Spotify, the multi-billion music platform, is again asking Americans to pay more for their Premium subscriptions.
The increase is the second hike in a year, much to music fan’s ire. The Premium plan costs the average American family $16.99, but this jump in price is a massive $3.
Spotify asks American families to pay more for Premium
The basic Premium subscription will rise to $11.99, up from $10.99. Spotify’s duo plans will increase to $16.99 from $14.99.
The company kept its student plan priced at $5.99, but this does little to stem most American households’ frustration with their favorite music on demand.
Existing subscribers have one month to prepare for the changes, but new customers will pay the new price.
The business decision will have surprised consumers after a rosy financial report had the company firmly in profit.
We reported at the time that Spotify’s Daniel Ek, the enigmatic Chief Operating Officer, said, “We’ve talked about 2024 as the year of monetization, and we’re delivering on that ambition.“
The CEO may have been thinking too literally, and his comments may see a backpedal in the coming days. EK had told investors and the public that only the new audiobook subscription tiers would come with any increased pricing this year.
Ek said earlier this year, “Now as we’ve shifted to focus on strong revenue growth and margin expansion, we see a clear opportunity to ensure we are also continuing to grow the top of our funnel. I feel good about the changes we are implementing and remain very confident in our ability to reach the ambitious plans we’ve outlined.”
Spotify has also made record profits, with its overall income hitting €168 million ($179 million) in the last financial report. Premium subscribers also surged by 14% to 239 million active users a month, an estimated 631 million for the second quarter of 2024.
What is driving the price hike remains to be seen, as the company has yet to make an official news report on its pricing decisions.
Image: Ideogram.
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