Look Out, Spotify’s Increasing Prices Again

Spotify, often under fire from various quarters, is set to increase the prices of its premium plans across several key markets, including the United States, the United Kingdom, and Australia. Bloomberg reports that individual plans will see a monthly increase of $1, while duo or family plans will rise by $2 per month.

In addition to the price adjustments, Spotify is introducing a new basic tier priced at $11 per month, which closely resembles its existing premium offerings but excludes access to audiobooks, a feature introduced in November 2023.

This latest round of price hikes echoes similar actions taken by Spotify last year, when it raised premium plan prices by $1 across North and South America, Europe, and Asia in July 2023. However, Spotify has yet to announce specific dates for the implementation of the new pricing.

The decision comes amidst ongoing scrutiny over Spotify’s payment policies, with calls from major industry players like Universal Music Group and Warner Music Group for streaming services to consider adjusting their pricing to keep up with inflation. Despite this criticism, Spotify achieved profitability for the first time in a fiscal year in the third quarter of 2023 and now boasts over 600 million users.

In October 2023, Spotify announced changes to its royalty payment model, including the introduction of a minimum stream threshold for artists to qualify for compensation, as well as a crackdown on fraudulent and non-music audio content.

On a positive note for Spotify users, both Neil Young and Joni Mitchell have ended their boycotts and returned to the platform, allowing fans to continue streaming their favorite songs despite the impending price hikes.