Spotify Announces Price Increase for Premium Subscriptions
Spotify has confirmed earlier rumors by announcing a price increase for its premium plans, effective next month. The individual premium plan will now cost $11.99 per month, a $1 increase from the current price. The Duo plan, which accommodates two users, will rise by $2 to $16.99, while the family plan will experience a $3 hike to $19.99 per month.
Notably, the student plan will maintain its current price of $5.99 per month. This price adjustment is currently limited to the US market, but it’s likely that other regions, including Pakistan, will follow suit. In fact, Pakistan has already seen a recent price increase, with the family plan now costing Rs. 579 per month, up from Rs. 479.
The latest price hike in the US makes Spotify more expensive than Apple Music, which still offers individual and family plans at $10.99 and $16.99, respectively. However, this move may prompt Apple to reconsider its pricing strategy, as companies often align their prices in competitive markets.
Spotify’s financial performance appears strong, with a 20% revenue increase and a 14% rise in premium subscribers, indicating that the price hike is a strategic move to capitalize on the platform’s growth rather than a desperate measure. This move suggests that Spotify is confident in its value proposition and is seeking to maximize revenue growth.
