Spotify Technology on Monday raised the prices of its premium plans in several countries, including the United States and the United Kingdom, as the music streaming company seeks to increase profitability in an uncertain economy.
The move will result in a $1 (almost Rs. 80) price increase for Spotify’s US plans, with the premium single now starting at $10.99 (almost Rs. 900), the duet at $14.99 (almost Rs. 1,230), the family at $16.99 (almost Rs. 1,390) and the student plan at $5.99 ( almost Rs. 490).
Spotify has moved in recent months to boost margins with hundreds of layoffs and a restructuring of the podcasts unit, which it had built with billions of dollars in investment.
The price increases come at a time when streaming services, both audio and video, are under increasing pressure from investors to increase profitability after years of prioritizing user growth.
Rival services from Apple and Amazon.com and Tidal have raised prices this year, while YouTube also raised prices last week on its premium monthly and yearly plans in the US for the first time since the subscription service launched in 2018.
Spotify, which had indicated in April that it would raise prices in 2023, also raised prices in 46 countries last year.
The Sweden-based company is due to report its second-quarter results on Tuesday.
In India, Spotify Premium costs Premium Mini at just Rs. 7 per day, however, is just a one-time plan that can only connect a single mobile device at a time. Other plans include the Premium Individual plan at Rs. 119 per month, Premium Duo at Rs. 149 per month and Premium Family at just Rs. 179 monthly. All three of these plans come with a free trial month.
© Thomson Reuters 2023