Spotify is hiking its prices again
Jun 3, 2024, 6:32 AM
NEW YORK, NEW YORK - FEBRUARY 01: The Spotify company logo is diaplayed as traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on February 01, 2023 in New York City. Stocks opened low this morning amid news of another interest rate increase by the Federal Reserve in its continued effort to slow inflation. (Photo by Michael M. Santiago/Getty Images)
(Photo by Michael M. Santiago/Getty Images)
NEW YORK (CNN) — Spotify is hiking its prices again, less than a year after it last increased prices for most of its subscription plans.
The latest price hike comes as streaming media companies face rapidly increasing costs of doing business – and customers continued to sour over rising prices of goods as inflation remains stubbornly high.
Beginning in July, Spotify’s U.S. subscribers will pay $1 more per month for its ad-free premium plan, rising to $11.99 per month — a 20% increase over the past two years. The audio streamer said it’s increasing prices to “continue to invest in and innovate on our product features and bring users the best experience.”
Some of Spotify’s other tiers are also getting price bumps. The monthly cost of Duo, a plan that lets two people split a premium plan, is rising by $2, to $16.99. The family plan is increasing prices by $3 to $19.99 per month.
Spotify recently increased subscription prices for international subscribers, cut costs and underwent several rounds of layoffs including drastic reductions to its podcast business.
Streaming, both music and television, is getting gradually more expensive for everyone as companies continue the elusive hunt for profits. Paramount, CNN’s parent company Warner Bros. Discovery, NBCUniversal and even Netflix have all raised prices in the past year in a drive toward profitability.
Shares of Spotify (SPOT) increased more than 2% in premarket trading, and the stock is up nearly 60% for the year.
