On Monday, Spotify announced a $1 price increase for its premium subscription, bringing the total to $10.99.
Existing premium plan members will be alerted via email when the price rise takes effect, and they will be granted a one-month grace period before it takes effect, unless they cancel their subscription before the grace period expires.
It is the business’s first price rise since 2011.
According to a press statement from Spotify, “The market landscape has continued to change since we launched.” “We are modifying our Premium prices throughout a number of markets* across the world to ensure we can keep innovating.”
Spotify Premium offers users an infinite amount of individual songs to play at their leisure in addition to being ad-free.
Bloomberg News claimed last month that Spotify was preparing a new super-premium tier that would reportedly contain hi-fi audio.
A few days before Spotify’s announcement, YouTube stated it will be raising the monthly fees for its individual YouTube Premium plan by $2 to $13.99 and its YouTube Premium Music service by $1 to $10.99. Over the past year, the cost of Apple and Amazon’s music subscription services has also gone up.
Spotify announced in April that it has more than 500 million users. A tech news outlet noted that less than half of those were paying customers and that Spotify’s paid-to-free subscriber ratio has been “in free-fall.”
Following the announcement on Monday morning, Spotify’s shares decreased by as much as 5%. On Tuesday, the corporation is anticipated to release its earnings.