Spotify is hiking rates for its monthly streaming plans in the U.S. for the second time in a year.
The Spotify Premium Individual plan is increasing by $1, from $10.99 to $11.99 per month, according to the company’s updated price listings. The Premium Family plan, which provides access for up to six members a household, is going up by $3, from $16.99 to $19.99 per month.
In the U.S. — Spotify’s biggest market — the company raised prices on its subscription plans in July 2023, the first time it had increased rates since launching in the country in 2011. Spotify said subscribers will receive email notifications over the next month about the latest price hikes.
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“As we continue to grow our platform, we are updating our Premium prices so that we can keep innovating in changing market conditions,” the company says in an FAQ about the price increases on its customer-service site. “These updates will help us continue delivering value to fans.”
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According to the company, existing Spotify Premium plan subscribers will be notified via email and given a one-month grace period before the new price becomes effective, unless they cancel before the grace period ends.
Meanwhile, Spotify’s Premium Duo plan (which offers two accounts) is rising $2, from $14.99 to $16.99 per month in the U.S. Spotify’s Student plan remains $5.99/month and includes access to Hulu with ads; that’s available only to students enrolled at an “accredited higher education institution.”
With the price hikes, Spotify’s U.S. subscription plans are now pricier than those of rival Apple Music, which offers an individual plan at $10.99/month and a family plan at $16.99/month (with access for up to six people).
Spotify as of the end of the first quarter of 2024 had 239 million Premium customers worldwide, a gain of 3 million in the period. Overall, the audio streamer has 615 million listeners (free and paid) worldwide.
On the Q1 earnings call with analysts, Spotify CEO Daniel Ek said the company regularly evaluates its “value-to-price” ratio vis-à-vis subscription pricing and occasionally chooses to raise rates, but he didn’t detail any specific planned increases at the time. “We’re constantly looking at how much value we’re adding, how consumers are responding… and what is the fair price to have a good value-to-price ratio,” Ek said on the April 23 call.