Just days after Spotify CEO Daniel Ek referred to “the cost of creating content being close to zero,” the company he leads is increasing prices. Again. Spotify today announced that it’s going to be more expensive — “adjusting Premium prices” is the official line — in the U.S. so “that we can continue to invest in and innovate on our product features and bring users the best experience.”
Here’s the bottom line on the new Spotify cost:
- An individual Premium subscription is going from $11 a month to $12 a month.
- A Duo subscription is going from $15 a month to $17 a month.
- A Family subscription is going from $17 a month to $20 a month.
- Student rates remain at $6 a month.
It’s the second price increase for Spotify in a little less than a year. Prices went up by about $1 per plan (Duo went up $2) in July 2023. The rationale not even 365 days ago? “So that we can keep innovating.” (Spotify at the time also noted “changing market conditions” and that the higher fees “will help us continue delivering value to fans.”)
All that innovating still, however, lacks any sort of high-res audio option, which has been in the works for years.
The new Spotify pricing goes into effect immediately for new subscribers. Current subscribers will get an email over the next month alerting them to the price increase. Spotify also said that if you’re currently on a trial account, you’ll get one month at the current price before being bumped up to the new prices.
Spotify is available in 184 countries and had 615 million monthly active users as of March 31, 2024. Some 239 million of those have Spotify Premium accounts, up 14% from 210 million year over year for that period. Spotify saw 3.247 billion euros in Premium revenue for the first quarter of 2024, with another 389 million euros in advertising revenue on its free tier.
