Spotify raises subscription prices once again
What's the story
Spotify has announced a price hike for its subscription plan in the United States, marking the third increase in three years. The monthly fee for the individual premium plan will now be $12.99, up from last year's $11.99 and $9.99 just a few years ago. Duo subscribers will see their rates go up to $18.99 per month from $16.99, while family plans will rise from $19.99 to $21.99 per month.
Student plan update
Spotify's student plans also see a price increase
Even Spotify's student plans are witnessing a price hike, with eligible users now having to pay $6.99 per month for their subscription. The changes are not limited to the US market but are also being implemented in Estonia and Latvia. However, other regions of the world will not be affected by these adjustments at this time.
Pricing comparison
Spotify's price hike makes it the costliest music streaming service
The latest price changes have made Spotify the most expensive mainstream music streaming service. YouTube and Apple both charge $10.99 for their individual plans, along with cheaper options for students and families than what Spotify is now offering. This has raised questions about the company's pricing strategy in comparison to its competitors in the industry.
Value explanation
Spotify's justification for the price hike
In a blog post announcing the changes, Spotify said that the new prices "reflect the value" it believes it delivers to users. The company has been diversifying its offerings by investing heavily in podcast rights. However, some critics argue that these additions may not be what all users want, especially those looking specifically for music streaming services.
Implementation timeline
Price changes will be reflected in February bills
The price hikes will be implemented over the next month and reflected in users' February bills. If you're a paid Spotify subscriber, you'll get an email notifying you of these changes. However, regions impacted by last summer's international price hike are not included in today's changes. This move comes after similar price hikes were seen in markets like the UK and Switzerland last year.