Spotify raises prices for its premium plans across several countries
SPOTIFY Technology on Monday (Jul 24) raised prices for its premium plans across several countries including the US and UK, as the music-streaming company looks to boost profitability in an uncertain economy.
The move will result in a US$1 price increase for Spotify’s US plans, with the premium single now starting at US$10.99, duo at US$14.99, family at US$16.99 and the student plan at US$5.99.
Spotify has moved in recent months to boost margins with hundreds of layoffs and a restructuring of the podcast unit, which it had built up with billions of US dollars in investment.
The price increases come at a time when streaming services, both audio and video, are under rising investor pressure to boost profitability after years of prioritising user growth.
Rivals services from Apple and Amazon.com and Tidal have all increased prices this year, while YouTube also hiked prices last week on its monthly and annual premium plans in the US for the first time since the subscription service was launched in 2018.
Spotify, which had indicated in April that it would raise prices in 2023, had also raised prices in 46 countries last year.
The Sweden-based company is due to report its results for the second quarter on Tuesday. REUTERS
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