Spotify increases prices for its premium subscription plans

Technology

Daniel Ek, CEO of Swedish music streaming service Spotify.
Toru Yamanaka | AFP | Getty Images

Spotify on Monday announced it will increase the price of its Premium subscription offerings by as much as $2, which translates to a 20% increase for some plans.

The company said the market landscape has “continued to evolve” since Spotify launched, and that the changes will help the company “continue to deliver value to fans and artists,” according to a blog post.

In the U.S., Spotify’s Premium Single offering now costs $10.99, up from $9.99, and the price of its Premium Duo plan changed to $14.99, up from $12.99. The company’s Premium Family plan is now priced at $16.99, up from $15.99, and the student offering costs $5.99, up from $4.99.

Shares of Spotify were down 5% Monday morning.

Spotify is also increasing prices across several other countries, including Canada, France, the United Kingdom, Mexico and Australia. The company said existing subscribers will be notified about the price changes via email and given a “one-month grace period” before the new prices go into effect.

“As we continue to grow our platform, we are updating our Premium prices so that we can keep innovating in changing market conditions,” the company wrote on its website. 

Spotify will report its quarterly earnings Tuesday at 6 a.m. ET.

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