Update: It’s official. “So that we can keep innovating, we are changing our Premium prices across a number of markets around the world,” says Spotify. “These updates will help us continue to deliver value to fans and artists on our platform.” Original story from July 21 below.
Spotify has resisted increasing its monthly subscription price for as long as possible. According to the Wall Street Journal, the subscription music service will issue a price increase in the US as soon as next week.
According to the report, Spotify will raise its standard subscription rate by $1 next week, bringing the monthly cost from $9.99 to $10.99.
The pricing change will only affect the ad-free premium tier. Dozens of other markets will see price increases “in the coming months,” the report adds.
The move comes almost a year after Apple Music bumped its subscription price from $9.99 to $10.99. Amazon Music and other music streaming services followed Apple earlier this year.
While Spotify hasn’t officially announced the price change, Apple pointed to licensing costs going up as its reason for the $1 per month increase:
The change to Apple Music is due to an increase in licensing costs, and in turn, artists and songwriters will earn more for the streaming of their music. We also continue to add innovative features that make Apple Music the world’s best listening experience.
Spotify also recently kicked its legacy subscribers off App Store payments, forcing subscribers to pay Spotify directly. The move removes Apple’s cut and ensures Spotify sees the full revenue stream.
FTC: We use income earning auto affiliate links. More.
