Spotify Technology Apple on Monday raised the prices of its premium plans in several countries, including the United States and the United Kingdom, as the music-streaming company looks to boost profitability in an uncertain economy.
The move will result in a $1 (roughly Rs. 80) increase in the price of Spotify’s US plans, with the Premium Single now starting at $10.99 (roughly Rs. 900), the Duo at $14.99 (roughly Rs. 1,230), the Family plan at $16.99 (roughly Rs. 1,390) and the Student plan at $5.99 (roughly Rs. 490).
Spotify has taken steps to boost margins in recent months with hundreds of layoffs and restructuring of the podcast unit, which it built with billions of dollars in investment.
The price hike comes at a time when streaming services, both audio and video, are under increasing pressure from investors to increase profitability after years of prioritizing user growth.
services from rivals Apple And Amazon.Com And Tidal has raised prices all this year, while YouTube also raised prices last week on its monthly and annual premium plans in the US for the first time since the subscription service launched in 2018.
Spotify, which indicated in April that it would raise prices in 2023, also raised prices in 46 countries last year.
The Sweden-based company is scheduled to report second quarter results on Tuesday.
In India, Spotify Premium costs Premium Mini just Rs. 7 per day, although it is a one-time plan that can connect only one mobile device at a time. Other plans include premium individual plan at Rs. 119 per month, Premium Duo Rs. 149 per month and Premium Family only Rs. 179 monthly. All these three plans come with one month free trial.
© Thomson Reuters 2023