Spotify to increase premium pricing in the US to $11.99 per month
Spotify has announced it's hiking subscriptions for customers in the U.S., the second such price increase in the space of a year.
The music-streaming giant reports that premium pricing will increase in July from $10.99 to $11.99, representing a rise of nearly 10%. The Duo and Family plans will go up to $16.99 and $19.99, which are $2 and $3 increases, respectively, while the student plan will remain at $5.99 per month.
The price rises come as Spotify appears to be in fairly good health, recently reporting a 20% increase in revenue, a 14% increase in premium subscribers, and a record quarterly profit. But the new pricing structure puts it above its big rival Apple, which -- for now, at least -- continues to charge $10.99 and $16.99 for individual and family plans, respectively.
Spotify's increase follows a similar announcement last July, when it revealed a swath of price hikes around the globe, including in the U.S. where the ad-free individual premium plan went up from $9.99 to $10.99 per month; the Duo, Family, and Student plans all went up too.
Spotify said premium subscribers will start receiving an email about the price increase in the next month. The company also confirmed to TechCrunch that the new premium pricing is applicable for new subscribers as of today, while it will only apply to existing subscribers from their July billing date.
