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Spotify Raises Prices for Premium Subscription $1 to $2 a Month

Prices increase between $1 and $2 per month, depending on the plan

Spotify announced a modest price increase for its premium subscription plans in more than 50 markets, including the United States, much of the European Union, and the United Kingdom. Price increases range from $1 to $2 per month depending on the plan.

Plan TypeNew Monthly PricePrevious Monthly PriceChange
Premium – Individual
   (1 account)
Premium – Duo    (2 accounts)$14.99$12.99$2.00
Premium – Family    (up to 6 accounts)$16.99$15.99$1.00
Premium – Student    (1 account)$5.99$4.99$1.00

Spotify made the announcement on their For the Record blog on Monday, noting that with more than 200 million premium subscribers, they are the world’s most popular audio streaming subscription service.

“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.

Spotify sent current subscribers an email notifying them of the change, and premium subscribers will also receive a pop-up message when they access Spotify in the app. Subscribers will continue to pay the current price until their September billing date. At that time, it will increase to the new price.

“We’re increasing the price of Premium (Individual) so that we can continue to invest in and innovate on our product offerings and features, and bring you the best experience,” the Spotify Team said in their July 24, 2023 email.

The email also includes information and links to cancel a premium account or to visit their support site for additional questions. Subscribers utilizing the one-month free trial will not be charged until the end of the free trial. Once the free trial ends, those premium subscribers will get one month of Spotify Premium at $9.99 a month. Thereafter, their premium subscription will increase to $10.99 a month. As of yesterday, new individual subscribers will pay $10.99 a month.

Copyright © 2023 Authority Media Network, LLC. All rights reserved. Reproduction without permission is prohibited.

For those who don’t want to pay the price increase, Spotify has an ad-supported, free plan. Premium subscribers get extra features including an ad-free experience, offline music downloads, and quality music streaming.

Source: Spotify

Spotify second quarter financials

On Tuesday, Spotify announced its second quarter financials for 2023, calling it a “very strong quarter.”

“We beat guidance and welcomed more users and subscribers than expected, with growth continuing to come from markets all over the world,” Spotify said in a July 25 blog post.

Highlights from the report include the following:

  • Monthly active users increased 27% to 551 million.
  • Premium subscribers grew 17% to 220 million.
  • Total revenue grew 11% to €3.2 billion (approx. $3.54 billion US), in line with the company’s guidance.
  • Adjusted gross margin was 25.5% not including charges related to cost cutting measures.
  • Adjusted operating loss was €112 billion (approx. $123.7 billion US) not including charges related to cost cutting measures.

{insert Spotify graphic)

Source: Spotify Q2 2023 report

Insider Take

While some may find a $2-a-month increase notable, Spotify is one of the last streaming companies to raise its prices. While their costs have gone up, and competition has grown, they have held fast to their pricing. That’s impressive. For most listeners, a $1 or $2-a-month increase is not significant enough to make a change. For price-sensitive consumers or those that don’t want to pay more on principle, the free ad-supported option is a good alternative.

Copyright © 2023 Authority Media Network, LLC. All rights reserved. Reproduction without permission is prohibited.

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