New Spotify Price Hike: How It Affects You

Spotify is increasing its prices again, less than a year after it last hiked prices for most of its subscription plans. This latest price hike comes as streaming media companies face rapidly increasing costs of doing business, while customers continue to feel the pinch of rising prices due to persistent inflation.

Starting in July, Spotify’s US subscribers will see a $1 increase in their monthly fee for the ad-free premium plan, raising it to $11.99 per month. This marks a 20% increase over the past two years. Spotify stated that the price increase is necessary to “continue to invest in and innovate on our product features and bring users the best experience.”

In addition to the premium plan, some of Spotify’s other tiers are also experiencing price increases. The Duo plan, which allows two people to share a premium subscription, will rise by $2 to $16.99 per month. The family plan will see a $3 increase, bringing the monthly cost to $19.99.

Spotify has also recently increased subscription prices for international subscribers, cut costs, and undergone several rounds of layoffs, including significant reductions to its podcast business. These measures reflect the broader trend in the streaming industry, where both music and television services are becoming more expensive as companies strive for profitability.

Other major players in the industry, such as Paramount, Warner Bros. Discovery (CNN’s parent company), NBCUniversal, and Netflix, have also raised their prices in the past year in an effort to achieve profitability.

Despite the price hikes, Spotify’s stock (SPOT) saw a more than 2% increase in premarket trading, and the stock is up nearly 60% for the year. This suggests that investors remain optimistic about the company’s prospects despite the challenges it faces.

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