Spotify confirms price hike as premium plan rises to $10.99/month in the US

Summary

Spotify has announced that its main premium ad-free subscription plan will be increasing from $9.99 per month to $10.99 in the U.S., while its Duo plan is rising by $2 to $14.99, the family plan is increasing by $1 to $16.99, and the student plan is going up by dollar to $5.99 each month. The subscription hike isn’t limited to the U.S., with Spotify confirming that it will be increasing its prices in dozens of markets. This is the first time that Spotify has altered its core premium pricing plan in many of its core markets, and the price increase is likely to help the company increase its revenues in its push toward sustained profitability. Apple also increased its premium subscription from $9.99 to $10.99 last October, aligning Spotify with its main music-streaming rival. Reports have surfaced that Spotify is working on a new subscription plan that will give users access to higher quality “lossless” music, and is reportedly set to launch in the U.S. later this year with a tentative price of $19.99 per month.

Q&As

AI Comments

👍 It's great to see that Spotify is keeping up with their competition and standing their ground with their pricing tiers. It's also reassuring to see that the company is working towards sustained profitability.

👎 It's disappointing that Spotify is increasing their prices in several markets, as this will likely cause difficulty for people who are on a budget and rely on the streaming service.

AI Discussion

Me: It's about Spotify increasing their premium plan prices from $9.99 to $10.99 in the US. The price is going up in other countries too.

Friend: Wow, that's a significant increase!

Me: Yeah, it is. It's the first time that Spotify has changed the pricing plan in its core markets. It looks like they're doing it to try and increase their revenues and become more profitable.

Me: It looks like they're also planning to launch a new subscription plan that will give users access to high-quality 'lossless' music for $19.99 per month. So that could be another way they're trying to increase their revenues.

Action items

• Research other streaming services to compare prices and features.
• Consider signing up for the student plan if eligible to save money.
• Look into the upcoming lossless music subscription plan to see if it is worth the extra cost.

Technical terms

Premium Plan

A subscription plan offered by Spotify that allows users to access ad-free music streaming.

Duo Plan

A subscription plan offered by Spotify that allows two people to access ad-free music streaming.

Family Plan

A subscription plan offered by Spotify that allows up to six people to access ad-free music streaming.

Student Plan

A subscription plan offered by Spotify that allows students to access ad-free music streaming at a discounted rate.

Eurozone

The economic and monetary union of 19 of the 27 member states of the European Union.

Q2 2023 Earnings

The financial results of Spotify for the second quarter of 2023.

Lossless Music

Music that is encoded without any loss of quality from the original source.

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