Spotify has confirmed another price increase, following earlier speculations from April. Starting next month, the cost of its premium plan will rise to $11.99 per month, up from the current $10.99.
Additionally, the Duo plan, which accommodates two users, will see a $2 increase, reaching $16.99. The family plan will experience a $3 hike, bringing it to $19.99 per month. Meanwhile, the student plan will maintain its current price of $5.99 per month.
This price hike has only been announced for the US so far, but it’s likely to extend to other markets eventually. For example, Spotify in Pakistan recently saw a price increase, with the family plan now costing Rs. 579 per month, up from Rs. 479. Compared to the US, these increases are relatively modest, suggesting that any future hikes in Pakistan will also be smaller.
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In the US, this adjustment makes Spotify more expensive than Apple Music, which still charges $10.99 and $16.99 for its individual and family plans, respectively. However, Spotify’s price increase might prompt its chief rival, Apple, to raise its prices to stay competitive—a common strategy in markets where companies often align their pricing.
Spotify’s financial health appears strong, with a 20% increase in revenue and a 14% rise in premium subscribers. This indicates that the price hike is not driven by desperation but rather an effort to capitalize on a period of robust performance.
