Spotify has announced it will raise prices in the US. The cost of its premium plan will increase by $1, from $10.99 to $11.99 starting next month.
The Duo plan, for two users, will rise by $2, reaching $16.99. The family plan will increase by $3, going up to $19.99 per month. The student plan will stay at $5.99 per month.
This price increase has only been announced in the US for now. But it might come to other markets later. Recently, Spotify in Pakistan also increased its subscription prices.
For example, the family plan now costs Rs. 579 per month, up from Rs. 479. This increase in Pakistan is much smaller than the one in the US.
With the US price increase, music streaming platform now costs more than Apple Music in the country. Apple Music still charges $10.99 and $16.99 for its individual and family plans, respectively.
This music streaming platform’s price increase could lead Apple to raise its prices too. This is common in competitive markets where companies often match each other’s pricing.
Spotify’s financial health looks strong. They have seen a 20% increase in revenue and a 14% rise in premium subscribers.
This suggests that the price hike is not out of desperation. Instead, it seems like an effort to capitalize further during a period of strong performance.
To read our blog on “Apple is appealing a $2 billion fine against Spotify,” click here
