Spotify to hike premium subscription prices in US

CANADA: Music streaming giant Spotify is gearing up to raise the Premium subscription plan price in the US to $10.99 per month, a one-dollar increase, as reported by The Wall Street Journal.

According to the media reports, the much-anticipated move is expected to be announced next week, with plans to introduce similar price hikes in “dozens of markets globally in the coming months,”.

Spotify, since its launch in 2011, has maintained the $9.99-per-month price for its ad-free Premium plan in the US, making the adjustment a significant change for American subscribers.

Spotify’s CEO, Daniel Ek, had previously acknowledged the possibility of a price increase in the US, drawing inspiration from competitors like Apple Music, who had already raised their prices.

Meanwhile, the company is scheduled to reveal its second-quarter 2023 earnings on July 25, Tuesday, before the market opens.

During the third-quarter 2022 earnings call in October, Ek pointed out that Spotify had made over 40 price adjustments across various global markets.

In the first quarter of 2023, Spotify exceeded its expectations, gaining 5 million Premium subscribers, reaching a total of 210 million. The platform’s overall user base, including free, ad-supported accounts, tallied an impressive 515 million worldwide.