Spotify Raises Prices for Premium Service in Over 50 Countries
Spotify, the popular music-streaming service, has announced that it will be increasing the price of its ad-free premium service in more than 50 countries, including the US, UK, and Ireland. The price hike will affect existing customers and will be implemented one month from the notification date.
Price Increase Details
Spotify, which currently boasts over 200 million Premium subscribers, has revealed that the price increase will result in a $1 (78p) rise for US-based plans. This means that the monthly rate for a single plan will now start at $10.99 (£8.56), while the duo plan will be priced at $14.99 (£11.68), the family plan at $16.99 (£13.29), and the student plan at $5.99 (£4.67).
In the UK, the price of Spotify’s plans will also see an increase of £1, as reported by technology news website The Verge. A total of 53 countries, including Spain, Australia, Canada, and France, will be affected by the price hike.
Notification to Existing Subscribers
Existing Spotify subscribers will be notified one month in advance before the price changes take effect. This allows customers to make an informed decision regarding their subscription.
Industry-wide Price Increases
Spotify’s decision to raise prices follows similar moves by other streaming services, such as Apple, Amazon, and YouTube. These companies have faced increasing pressure from investors to boost profitability after years of growing user numbers.
YouTube, for example, recently increased prices for its monthly and annual premium plans in the US. This marks the first price hike since the subscription service was launched in 2018.
In an effort to improve profitability, Spotify has undergone significant restructuring, including laying off hundreds of staff and reorganizing its podcast unit. The company had previously invested billions of dollars in building up its podcast division.
Options for Premium Subscribers
Spotify has stated that Premium subscribers who do not wish to pay the higher fee can switch to the free ad-supported service. This allows users to continue enjoying Spotify’s music streaming platform without incurring additional costs.
As the music streaming industry continues to evolve, price adjustments are becoming more common. While customers may be disappointed by the price increase, it is essential for companies like Spotify to find a balance between providing a high-quality service and ensuring long-term profitability.
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