As expected, Spotify is increasing the prices of its premium, ad-free streaming plans in the U.S. over the next month, the company announced early Thursday. It’s the third price hike in four years for Spotify in the U.S.
The increase in the U.S. has been expected, after Spotify raised prices in the U.K. and Switzerland last fall.
“Occasional updates to pricing across our markets reflect the value that Spotify delivers, enabling us to continue offering the best possible experience and benefit artists,” the company said in announcing the price hikes Thursday.
Under the new U.S. pricing, Spotify individual premium plans will increase from $11.99 to $12.99/month. The Duo (two person) plan is increasing from $16.99 to $18.99/month, and Family increasing from $19.99 to $21.99. Student plans are also increasing from $5.99 to $6.99/month.
SEE ALSO: It’s About Time Spotify Raised Subscription Prices in the U.S. (Opinion)
Spotify said within the next month, Premium subscribers across the U.S. (as well as in Estonia and Latvia) will receive an email with details about the price increases. New subscribers can see the latest pricing at spotify.com/premium.
While any price hike in an uncertain economy is usually greeted with annoyance if not outrage, there’s little question that music streaming is one of the better bargains in the entertainment world, and surveys have shown that consumers have long been willing to pay more.
As Variety noted in an op-ed published in November when this latest price increase was signaled, a dollar-per-month increase is estimated to bring the music industry an additional $500 million per year in annual revenue. One would hope that increase will be distributed in a way that helps not only music companies (which distribute streaming royalties to artists), Spotify and its investors, but musicians and particularly songwriters: With an average of $0.003 to $0.004 generated per stream, only the top-streamed artists can make a living; and with approximately 25% of that $0.003 to $0.004 going to the song’s (usually) multiple songwriters and publishers, they make dramatically less.
In the U.S. — which is Spotify’s biggest market — the company last raised subscription prices in June 2024. That came after a fee hike in July 2023, which marked the first time Spotify raised prices since its 2011 launch in the U.S. (originally, the music streamer cost $9.99/month for an individual plan).
Separately, effective Jan. 1, Spotify co-founder Daniel Ek stepped down from the CEO role to become executive chairman. The company now has two co-CEOs: Gustav Söderström (formerly chief product and technology officer) and Alex Norström (previously chief business officer).
