Spotify Technology (NYSE:SPOT) has decided to raise the prices of its premium plans in multiple countries, including the United States and the United Kingdom, as the music-streaming giant seeks to enhance profitability amidst economic uncertainty.
As a result of this move, Spotify’s U.S. plans will see a $1 price increase, with the premium single plan now starting at $10.99, the duo plan at $14.99, the family plan at $16.99, and the student plan at $5.99.
In recent months, Spotify has been taking measures to improve its profit margins, including carrying out significant layoffs and restructuring its podcast division, which had previously received substantial investments.
These price adjustments come at a time when streaming services, both audio, and video, are facing mounting pressure from investors to boost profitability, shifting focus from a long-standing emphasis on user growth.
Other major competitors like Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN), and Tidal have also raised their prices this year. Additionally, YouTube raised the prices on its monthly and annual premium plans in the U.S. last week, marking its first price hike since the subscription service’s launch in 2018.
Spotify had already signaled its intention to raise prices in 2023 back in April and had previously implemented price increases in 46 countries last year.
The Sweden-based company is expected to release its second-quarter results on Tuesday.
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Author Faith Yakubu 
