potify is increasing the prices of its premium subscriptions in many of its global markets including the UK and US.
The music-streaming service’s Premium plan now costs £10.99 per month in the UK, up from £9.99 previously, according to the company’s website.
Spotify has also raised the price of its monthly plans aimed at multiple users by £1 each: A Duo subscription for two people now costs £14.99, while a Family plan for six people costs £17.99. The price of a Spotify student subscription remains unchanged at £5.99 per month.
In a blog post, Spotify said the increase would allow it to keep “innovating” in an evolving “market landscape”.
“These updates will help us continue to deliver value to fans and artists on our platform,” the company said.
Spotify is notifying customers of the changes via email.
The price hike has been in the works for months. Spotify CEO Daniel EK previously said the company was “ready to raise prices” and that “he would like to do that in 2023”. He added that Spotify was discussing the plan with record labels.
While Spotify previously upped the price of multi-user bundle plans in 2021 — including its Duo, Family, and Student tiers — this marks the first increase for its classic plan for individuals. All four subscriptions come with a one-month free trial for new customers.
Spotify also offers a free option with adverts and limited playback functionality.
Spotify had 515 million global users and 210 million paid subscribers at last count. Meanwhile, the amount it makes from advertising dropped by 27 per cent sequentially in its first quarter of last year. Therefore, ramping up subscription costs could help to offset any further declines in its ad business.
Spotify is also a different beast from what it was upon its launch in 2011. The company has since branched out beyond music to add podcasts and, more recently, audiobooks to its service.
How does the new price tag compare to other music streaming platforms?
The price rise means Spotify’s classic subscription now costs the same as rivals Apple Music and Amazon Music Unlimited in the UK. Meanwhile, YouTube Music remains the only holdout at £9.99 per month, though that may change as the service recently upped its price to $10.99 in the US.