Spotify's quarterly earnings report

Spotify Raises Premium Subscription Prices in US for Second Time in a Year Starting in July

Jun 3, 2024, 04:10 PM

Spotify has announced a price increase for its premium subscription plans in the United States, marking the second hike in less than a year. Starting in July, the Premium Individual plan will rise from $10.99 to $11.99 per month, the Duo plan will increase from $14.99 to $16.99, and the Family plan will go up from $16.99 to $19.99. Despite the price adjustments, the Student plan will remain at $5.99 per month. The company aims to boost its margins with these changes. Spotify's shares rose by about 5% following the announcement, indicating investor confidence in the move. This price hike comes as Spotify continues to be one of the leading streaming services with a low monthly churn rate of around 2%, similar to Netflix. The new pricing makes Spotify's Family plan $3 more expensive than Apple Music's equivalent plan.