For the first time in more than a decade, Spotify has announced a price increase for its 200 million ad-free subscribers.
Subscribers in the US with a premium individual plan will experience a cost hike from $9.99 to $10.99 (THB 129 to THB 139 in Thailand).
The same price increase applies to subscribers in the UK, Canada, Australia, and an additional 49 countries.
This decision follows the trend of other streaming services that have also raised their subscription fees.
“In order to continue our innovation, we are adjusting our Premium pricing in various global markets,” stated the music streaming service on Monday.
“These modifications will enable us to keep providing value to both fans and artists on our platform.”
In the United States, the Premium Duo plan will rise from $12.99 to $14.99, the Family plan will go up from $15.99 to $16.99, and the Student plan will move from $4.99 to $5.99.
UK-based Premium subscribers will be charged an extra £1 per month, as reported by The Verge.
Spotify informed users that they “will be given a one-month grace period before the new price becomes effective, unless they cancel before the grace period ends”.
The firm previously raised prices for US family plans and UK Student, Duo, and Family plans in 2021. The individual plans remained unaffected till now.
Other streaming services, such as Apple Music, Peacock, Netflix, Max, and Paramount+, have also increased their subscription fees recently.
The updated Spotify Premium pricing aligns with the monthly fees of competing services like Apple Music and Amazon Music.
During an earnings call in April, the company’s Swedish CEO Daniel Ek expressed the intent to “increase prices in 2023”.
“When the timing is right, we will raise it and that price increase will go down well because we’re delivering a lot of value for our customers,” Mr. Ek elaborated.
Earlier in January, the music powerhouse trimmed 6% of its workforce, attributing this to a drive for improved efficiency.
Spotify will keep offering a complimentary plan that comes with advertisements.
Spotify boasts 515 million active users spread across more than 180 markets, with approximately 40% of these users being subscribers.