Spotify, the popular music streaming platform, is reportedly planning to increase the price of its premium plan in the United States. According to sources familiar with the matter, the brand is set to announce a $1 price hike, raising the cost from the current $9.99 to $10.99 per month. This potential increase comes after other major players in the music streaming industry, such as Apple Music and Amazon Music, also raised their prices.
The premium plan on Spotify currently offers subscribers the ability to enjoy ad-free and offline music streaming for $9.99 per month. Additional users on the same plan incur additional fees. While the price hike is a small increment, it represents a trend in the music streaming market, with competitors adjusting their prices as well.
Spotify’s CEO, Daniel Ek, had hinted at a possible price increase during the company’s earnings call last year. He acknowledged that raising prices was something they were considering, especially in light of recent developments with label partners. Ek also mentioned that Spotify has a significantly lower churn rate than its competitors, indicating that customers tend to remain loyal to the service, which may mitigate any negative impact of the price change.
While the price increase is expected to take effect in the US, it remains unclear if the same decision will be implemented in other markets, including India.