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Spotify is hiking the price of its Premium subscription plan in the U.S. beginning next month.
In a notice sent to users on Thursday, the streaming giant said its Premium Individual plan will increase from $11.99 to $12.99 per month, starting with users’ February billing cycles.
“Occasional updates to pricing across our markets reflect the value that Spotify delivers, enabling us to continue offering the best possible experience and benefit artists,” a Spotify spokesperson told FOX Business in an email.
The company offers an advertising-supported free service with limited features and a subscription-based paid service that gives access to all its functionality, with premium subscribers accounting for most of its revenue.
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The Spotify website is seen on a smartphone. (Gabby Jones/Bloomberg via Getty Images)
The company said its Premium subscribers across the U.S., Estonia and Latvia will receive an email over the next month that will explain what the update means for their subscriptions.
Spotify’s other Premium plans are also seeing price increases, Billboard reported.
The Premium Family plan will increase by $2, from $19.99 to $21.99. The Premium Duo plan will rise from $16.99 to $18.99. The Premium Student plan will also go up from $5.99 to $6.99, according to Billboard.
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The Spotify logo is pictured in this photo illustration. (Dilara Irem Sancar/Anadolu via Getty Images)
The move marks the latest in a string of price hikes the company has implemented in the past few years.
In June 2024, Spotify increased prices for its Premium plans in the U.S. to $11.99, up from $10.99. That marked the second time in less than a year as the audio streaming giant tried to expand its margins.
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Spotify, which boasts more than 713 million users, has continually told customers that its price hikes are critical to helping the company invest in and innovate in its product offerings and features.
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Prior to 2024, Spotify raised prices in July 2023, which was the first time it increased them since the service launched in the U.S. in 2011.