Spotify has decided to increase its monthly subscription price. This decision comes after a long period of resistance against such a move. The Wall Street Journal reports that the price hike will be implemented in the United States starting next week.
The standard subscription rate for Spotify’s ad-free premium tier will see an increase of $1. This means that the monthly cost, which currently stands at $9.99, will rise to $10.99. While the price change is initially targeting the US market, it is expected that similar increases will be rolled out across dozens of other markets in the forthcoming months.
This decision by Spotify mirrors a similar move made by Apple Music nearly a year ago. Apple Music raised its subscription price by $1 to $10.99, a move that was later followed by Amazon Music and other streaming services. Although Spotify has not officially announced the reason behind the price change, Apple had previously attributed its own increase to rising licensing costs. They claimed that the additional dollar per month would enable artists and songwriters to earn more from the streaming of their music.
In addition to the price increase, Spotify has also recently taken steps to ensure that its legacy subscribers pay directly, bypassing Apple’s App Store payment system. This strategic move allows Spotify to retain the entire revenue stream without having to share a portion with Apple.
As the music streaming industry continues to evolve, companies like Spotify are constantly seeking ways to improve their services while ensuring fair compensation for artists and songwriters. This price increase appears to be a part of that ongoing effort.
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