Daniel Ek, CEO of Swedish music streaming service Spotify.
Toru Yamanaka | AFP | Getty Images
Spotify
announced on Monday that it will be increasing the prices of its Premium subscription offerings by up to $2, representing a 20% increase for certain plans.
In a blog post, the company mentioned that the market landscape has been constantly evolving since Spotify’s launch, and these changes are aimed at delivering more value to both fans and artists.
In the United States, the price of Spotify’s Premium Individual plan has risen from $9.99 to $10.99. Meanwhile, the Premium Duo plan has increased from $12.99 to $14.99, the Premium Family plan is now priced at $16.99 instead of $15.99, and the Student offering costs $5.99, up from $4.99.
As a result, Spotify’s shares dropped over 4% on Monday.
Apart from the U.S., Spotify is also raising prices in other countries such as Canada, France, the United Kingdom, Mexico, and Australia. The company assures existing subscribers that they will be notified via email about the price changes and will receive a one-month grace period before the new prices take effect.
The company explained on its website that these Premium price adjustments are necessary to continue innovating in an ever-changing market landscape as they grow their platform.
Spotify will release its quarterly earnings on Tuesday at 6 a.m. ET.
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