Spotify has announced another price increase, confirming earlier speculations from April. Starting next month, the cost of its premium plan will rise to $11.99 per month, a $1 increase from the current $10.99.
Additionally, the price for the Duo plan, which allows two users, will increase by $2, reaching $16.99. The family plan will see a $3 hike, bringing it to $19.99 per month. However, the student plan will maintain its current price of $5.99 per month.
This price hike has only been announced in the US for now, but it wouldn’t be surprising to see it reach other markets later on. Spotify in Pakistan recently saw a bump in subscription prices too, the family plan, for instance, now costs Rs. 579 per month, up from Rs. 479. This is nothing compared to the recent price increase in the US, so we can expect increases in Pakistan, if any, to be much smaller in comparison.
Speaking of the US price bump, it now makes Spotify more expensive than Apple Music in the country, which is still charging $10.99 and $16.99 for its individual and family plans, respectively.
However, Spotify’s latest price increase could lead its chief rival, Apple, to raise its prices to align with Spotify’s — a common strategy in competitive markets where companies often match each other’s pricing.
Spotify’s financial health appears robust, evidenced by a 20% increase in revenue and a 14% rise in premium subscribers. This suggests that the price hike is not out of desperation but rather an effort to capitalize further during a period of strong performance.
