Spotify just announced that it’s increasing premium subscription prices for its users around the world.
The new price adjustment will see Spotify’s U.S. users now pay $1 more with the premium single now starting at $10.99, duo at $14.99, family at $16.99 and the student plan at $5.99.
‘’The market landscape has continued to evolve since we launched. So that we can keep innovating, we are changing our Premium prices across a number of markets* around the world. These updates will help us continue to deliver value to fans and artists on our platform.’’ Spotify said in a blog post.
Launched in 2008, Spotify has grown to become one of the most popular audio streaming platforms with more than 200 million Premium subscribers. The company has also launched a number of initiatives over the years to support users and creators on its platform.
In Africa for example, it has invested in Vibrate Space from its Creator Equity Fund to support emerging artists in Ghana. In 2022, it also unveiled a $100,000 fund that aims to bolster the careers of African podcast creators through financial grants, workshops and networking opportunities.
The new price changes also come at a time when the company has been trying to boost its margins. According to its second quarter 2023 results released on Tuesday, revenue rose 11% year-over-year to €3.2 billion, with growth for both premium (11%) and ad-supported (12%) versions.
Operating loss widened from €194 million to €247 million, while Adjusted operating loss narrowed from €174 million to €112 million.
The streaming giant’s total monthly active users increased by 27% to 515 million, with premium subscriber count going up by 17% to hit 210 million. Ad-supported users went up 34% to 317 million while the gross profit increased by 9% to €766 million.
The new Spotify price increase is expected to go into effect on August 1, 2023, before expanding to other countries.