SPOTIFY RAISES THE PRICE OF PREMIUM IN THE U.S. ($11.99)
Spotify, today announced a price hike for its premium subscription plans in the US, the second increase within a year.
Effective Date and Impact:
- The new pricing for Spotify Premium takes effect on June 3, 2024, for new subscribers.
- Existing subscribers will see the change reflected in their July billing cycle.
Plan Price Changes:
- Individual plan: Increases from $10.99 to $11.99 per month.
- Duo plan: Jumps from $14.99 to $16.99 per month.
- Family plan: Rises from $16.99 to $19.99 per month.
- Student plan: Remains at $5.99 per month (unaffected).
Justification from Spotify:
- The price increase is necessary to invest in continuous product improvements and innovation to enhance user experience.
Previous Price Hike:
- This follows a similar global price hike in July 2023.
Communication to Existing Subscribers:
- Existing users will receive email notifications about the upcoming price change within the next month.
Impact on Free Trials and New Sign-Ups:
- New subscribers signing up after June 3rd will be subject to the new pricing immediately.
- Existing users on a free trial will be charged the new $11.99 monthly fee after their trial ends.
Possible Reasons for Price Increase:
- The trend reflects industry-wide adjustments likely driven by:
- Securing music and podcast licensing rights.
- Investments in expanding content libraries.
- Improving user experience.
Spotify Subscription Plans:
- Premium Individual: Ad-free music, on-demand playback, offline downloads.
- Premium Student: Discounted version of Individual with the same benefits.
- Premium Duo: Ad-free music, on-demand playback, offline downloads for two users living together.
- Premium Family: Ad-free music, on-demand playback, offline downloads for up to six users in the same household.
Free Tier:
- Still available for those who prefer an ad-supported music listening experience with limited song selection control.
