Spotify has announced a second increase in its premium subscription prices within a year, following its initial hike in July 2023. The latest price adjustment affects Individual, Duo, and Family plans in the US. The new rates take effect immediately for new subscribers and roll out to existing ones over the next month.
Starting now, Spotify Premium for individual users will cost $11.99 per month, up from $10.99. The Duo plan, designed for two users, will rise from $14.99 to $16.99 per month, while the Family plan, accommodating up to six accounts, will jump from $16.99 to $19.99 per month.
Despite these price increases, the company hasn’t introduced any new features or benefits to justify the higher costs.
“We’re increasing the price of Premium Individual so that we can continue to invest in and innovate on our product offerings, and features, and bring you the best experience,” announced Spotify.
This rationale, however, may not satisfy subscribers who are paying more without receiving additional services.
Spotify also announced that it won’t charge users until the trial period, if any, ends. After it ends, users will be given a month’s grace period at the earlier prices, and only then will they be charged the increased amount.
“If you’re currently on a trial, you won’t be charged until your trial ends. Once your trial ends, you will be given 1 month on the current price of $10.99 before your bill being increased to $11.99,” explained Spotify.
Spotify has recently increased prices in several international markets, signalling a broader strategy to boost revenue. While this is anticipated, it still comes as a shock to many users who are evaluating Spotify’s value proposition compared to competitors like YouTube Music.
The company’s first hardware tech, Car Thing, did not fare well with customers, prompting the company to discontinue it starting December 9, 2024. This announcement did not bode well with users, forcing the company to issue refunds.
In April, Spotify introduced AI-powered playlist creation functionality in beta, allowing users to create playlists based on written prompts.
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