The second price hike in a year
Summary
- Spotify is increasing its subscription prices in the US starting July 2024, with plans like Premium going up by $1 to $11.99.
- The price hike affects all Spotify plans, including Premium Duo and Family. The Family plan sees a $3 increase to $19.99.
- Spotify justifies the price bump by citing the need to invest in product offerings and features.
Spotify last hiked its subscription prices in the US in July 2023, bumping up the Premium individual plan’s price by $1 to $10.99. This hike came within two years of Spotify increasing its Family tier prices in the US by $1 in 2021. Less than a year later, the world’s most popular music streaming service is getting another price bump. This time, the hike affects all of Spotify’s plans, including Premium Duo and Family.
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Starting July 2024, Spotify Premium will cost $11.99, up $1 from its current price. The Premium Duo plan is getting a $2 hike and will cost $16.99 from next month. Family plan is getting the biggest hike, with its price jumping by $3 from $16.99 to $19.99. Spotify will charge trial users at its current rate for the first month and switch them to the higher pricing from the billing cycle after that. So, why the price bump? The company says it is doing this so that it “can continue to invest in and innovate on our product offerings and features, and bring you the best experience.”
Spotify officially announced the price hike in a blog post (via The Verge) and will email existing users to inform them about this. The US price increase comes a month after the music streaming service announced a similar price bump in some key international markets, like the UK and Australia.
Time for Spotify to launch its lossless streaming tier
Almost all music streaming services have raised prices in the last year or two. But Spotify stands out among them for hiking its prices twice in the same time span. This is even though it lacks a lossless Hi-Fi streaming tier, which the company announced as far back as 2021. Recently leaked screenshots suggest the tier could launch soon, but at this point, it’s better to wait for an official launch before getting your hopes high.
The price hike is unlikely to impact Spotify’s growth. Even after last year’s price bump, the streaming service added a record 113 million free and 31 million paid users in 2023. Combined with three rounds of layoffs, the company returned to profitability and posted a record operating profit of €168 million in Q1 2024.
