Popular music streaming service Spotify is set to increase its monthly subscription price for the first time. According to reports from the Wall Street Journal, the company plans to implement the price hike in the US as early as next week.
The current standard subscription rate for Spotify’s ad-free premium tier is $9.99 per month. However, the new pricing will see a $1 increase, making the monthly cost $10.99.
It’s worth noting that this price change will only apply to the ad-free premium tier of the service. However, Spotify users in other countries should also brace themselves for similar adjustments, as dozens of other markets are expected to see price increases in the coming months.
This decision comes after almost a year since Apple Music raised its subscription price from $9.99 to $10.99. Following Apple’s lead, other music streaming services, including Amazon Music, have also adjusted their prices this year.
While Spotify is yet to make an official announcement regarding the price increase, Apple, when questioned about its own price adjustment, attributed the change to rising licensing costs. The increase in subscription fees is expected to benefit artists and songwriters, who will earn more from the streaming of their music. Apple Music also continues to introduce new and innovative features to enhance its user experience.
In addition to the price increase, Spotify has made other strategic moves to maximize revenue. Recently, the company removed its legacy subscribers from App Store payments, requiring them to pay directly through Spotify. This change enables Spotify to retain the full revenue stream by eliminating Apple’s commission on subscriptions.