BNR – The Swedish audio streaming service, Spotify, announced it is increasing the price for around 200mln no-ads users. The move is the first in over ten years.
The individual plan price in the United Kingdom will increase by £1, reaching £10.99. On the other hand, the premium pair plan will go for £14.99, while the family plan for £17.99.
The price of the students’ plan, however, is going to stay the same at £5.99.
The move occurs after other streaming platforms raised their subscribing prices. Furthermore, comparable price increases apply to the United States, Canada and 49 other states.
In the United States, prices for the individual plan will rise from $9.99 to $10.99.
The premium pair plan will rise from $12.99 to $14.99 and the family plan from $15.99 to $16.99. The price of the students’ plan in the United States will also rise from $4.99 to $5.99.
Premium Plans Price Adjusted for Value
Spotify said in a statement that they desire to stay innovative, thus will raise some Premium costs in several countries. “These updates will help us continue to deliver value to fans and artists on our platform,” the streaming service said.
The service explained that subscribers will get a one-month warning period before the new pricing changes. “Unless they cancel before [it] ends,” it added.
In 2021, the firm increased costs for United States’ family plans and United Kingdom’s student, pair, and family plans.
Individual plans were never impacted by price changes, until this time. Apple Music, Peacock, Netflix, Max, and Paramount+ have also recently increased registration costs.
The new Spotify Premium price is similar to that of rivals Apple Music and Amazon Music. In a revenue call in April, Swedish CEO Daniel Ek stated that the firm would increase costs in 2023.
Ek believes the company will not face any backlash for the price increases because they offer more value to customers.
The streaming service behemoth fired 6 per cent of employees in January, stating that efficiency is crucial at the moment. Also, the platform will keep providing the free plan that features ads and offers.
The firm has 515mln people active in more than 180 markets, nearly 40 per cent of which are subscribers. Spotify will disclose its most recent finance results on Tuesday.
