Spotify, a popular music-streaming company, has increased the prices of its premium plans in various countries, including the US, UK, and Australia. This decision is aimed at making the company more profitable during uncertain economic times.
In the US, the monthly cost of Spotify’s premium plans has gone up by $1. For example, the premium single plan now starts at $10.99, the duo plan at $14.99, the family plan at $16.99, and the student plan at $5.99.
To improve its profits, Spotify has taken several measures, including cutting jobs and restructuring its podcast unit, which had received significant investment.
Despite these changes, Spotify has seen a 27% increase in monthly active users, reaching 551 million in the April to June period. Additionally, the number of premium subscribers has grown by 17% to reach 220 million.
Spotify’s price increase follows similar moves by its competitors like Apple, Amazon.com, and Tidal. YouTube also raised prices for its premium plans in the US recently.
Spotify had already announced its intention to raise prices in 2023, and it had previously increased prices in 46 countries last year.
In the UK, prices have gone up by £1 per month, while in Australia, prices have increased by A$1 for individuals and by A$2 for duo and family plans.
Overall, Spotify continues to have more paying subscribers than any other audio streaming service. The company is set to report its second-quarter results soon, after implementing cost-cutting measures, including laying off 600 employees in January.
Spotify’s co-founder and chief executive, Daniel Ek, acknowledged that the company had grown too quickly during the pandemic and that he had been too ambitious in investing before revenue growth.
