Spotify raises prices in the U.S. with plans to invest in its other services
Image Credit: Bloomberg
Spotify has announced another price increase for its subscription plans in the United States, marking the second hike within a year.
The streaming giant stated that the adjustments are necessary to continue investing in its product features to ensure users have the best possible experience.
How much is Spotify in the USA?
The following changes come shortly after similar price hikes were implemented for international subscribers last month. Starting next month, Premium subscribers in the U.S. will see these price increases:
- Premium Plan: Increasing from $10.99 to $11.99 per month.
- Duo Plan: Two users on the same plan can expect to pay $16.99 per month, up from $14.99.
- Family Plan: Accommodating up to six users, the price will increase to $19.99 from $16.99 per month.
- Student Plan: Remains unchanged at $5.99 per month.
As reported by Variety, Spotify had approximately 239 million Premium subscribers globally at the end of the first quarter of 2024, marking an increase of 3 million subscribers over the quarter. Meanwhile, the total number of global users, including those on the free tier, stands at 615 million.
Existing subscribers will be notified via email and given a one-month grace period before the new prices take effect unless they choose to cancel their subscription before the end of the grace period.
In April, Bloomberg News indicated that part of the motivation for the price hikes was to cover the cost of expanding Spotify’s audiobook services. The company aims to grow this sector to lessen its reliance on music streaming alone.
Nevertheless, these price increases place Spotify at a higher price point compared to its biggest competitors. Apple Music continues to offer its Solo plan at $10.99 per month and its Family Plan, providing access for up to six people, at $16.99 per month.
As NBC News writes, considering the broader economic contexts’ role in these decisions demonstrates how Spotify is in notable contrast with other U.S. companies which continue to announce price cuts amid signs of reduced consumer spending.
If you’re currently a Spotify Premium subscriber, let us know whether its recent price hikes are driving you to find your music elsewhere.