Spotify Announces Second Price Hike in a Year for U.S. Subscribers
If your idea of relaxation includes listening to your music or favorite podcast on Spotify, this might become less carefree when the next bill arrives. The music streaming firm has announced its second price hike in a year for its ad-free, premium subscription tiers in the U.S.
Starting from July, the individual plan will increase by $1, rising from $10.99 to $11.99 per month. The Duo plan, designed for two accounts, will cost $16.99, up from $14.99. The family plan, which supports up to six accounts, will see a $3 increase, from $16.99 to $19.99 per month. However, the Student plan, which costs $5.99 per month and includes access to Hulu with ads, remains unchanged and is available to students enrolled in accredited higher education institutions.
This follows the company’s initial price hike in July 2023, the first since the platform’s U.S. launch in 2011. Subscribers will receive email notifications about the new prices and will be given a one-month grace period before the changes take effect, unless they cancel before this period ends. Spotify explained that the decision to raise prices comes as the company continues to expand its offerings and invest in new technologies and features. The music streamer also mentioned receiving positive feedback from users, the majority of whom, when consulted, considered the price increase to be fair and proportionate.
On the Q1 earnings call with analysts, Spotify CEO Daniel Ek said the company regularly evaluates its “value-to-price” ratio concerning subscription pricing and occasionally chooses to raise rates. “We’re constantly looking at how much value we’re adding, how consumers are responding, and what is the fair price to have a good value-to-price ratio,” Ek said on April 23rd, without detailing any specific planned increases at the time.
Data shows the company’s strategy is thriving. Spotify users seem loyal and satisfied. As of the first quarter of 2024, Spotify reported having 239 million Premium subscribers worldwide, reflecting an increase of 3 million from the previous period. Overall, Spotify boasts 615 million listeners globally, encompassing both free and paid users. More good news came from the market: the company shares rose by about 5% on Monday after the company announced it will once again raise the prices for its subscription plans in the U.S.
https://variety.com/2024/digital/news/spotify-price-increase-premium-streaming-plans-1236023317/
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If your idea of relaxation includes listening to your music or favorite podcast on Spotify, this might become less carefree when the next bill arrives. The music streaming firm has announced its second price hike in a year for its ad-free, premium subscription tiers in the U.S.
Starting from July, the individual plan will increase by $1, rising from $10.99 to $11.99 per month. The Duo plan, designed for two accounts, will cost $16.99, up from $14.99. The family plan, which supports up to six accounts, will see a $3 increase, from $16.99 to $19.99 per month. However, the Student plan, which costs $5.99 per month and includes access to Hulu with ads, remains unchanged and is available to students enrolled in accredited higher education institutions.
This follows the company’s initial price hike in July 2023, the first since the platform’s U.S. launch in 2011. Subscribers will receive email notifications about the new prices and will be given a one-month grace period before the changes take effect, unless they cancel before this period ends. Spotify explained that the decision to raise prices comes as the company continues to expand its offerings and invest in new technologies and features. The music streamer also mentioned receiving positive feedback from users, the majority of whom, when consulted, considered the price increase to be fair and proportionate.
On the Q1 earnings call with analysts, Spotify CEO Daniel Ek said the company regularly evaluates its “value-to-price” ratio concerning subscription pricing and occasionally chooses to raise rates. “We’re constantly looking at how much value we’re adding, how consumers are responding, and what is the fair price to have a good value-to-price ratio,” Ek said on April 23rd, without detailing any specific planned increases at the time.
Data shows the company’s strategy is thriving. Spotify users seem loyal and satisfied. As of the first quarter of 2024, Spotify reported having 239 million Premium subscribers worldwide, reflecting an increase of 3 million from the previous period. Overall, Spotify boasts 615 million listeners globally, encompassing both free and paid users. More good news came from the market: the company shares rose by about 5% on Monday after the company announced it will once again raise the prices for its subscription plans in the U.S.
https://variety.com/2024/digital/news/spotify-price-increase-premium-streaming-plans-1236023317/
Share:
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