Spotify is increasing its prices in the United States for many of its subscription plans.
In a statement on its website, the audio streaming service said the increases were necessary so that it can "invest in and innovate on our product features and bring users the best experience."
Here are the changes:
- Premium plan: $10.99 to $11.99.
- Duo plan, for two users in the same household: $14.99 to $16.99.
- Family plan, for up to six users in the same household: $16.99 to $19.99.
The company still offers a limited-service ad-supported tier, as well as a $5.99 plan for students. That price is not changing.
It's only the second time Spotify has raised U.S. prices. The company is now consistently profitable, CEO Daniel Ek said during its latest earnings announcement, although its most recent monthly active user growth figure narrowly missed targets.
In April, Bloomberg News reported that price increases were coming in part to cover the cost of audiobooks, a service Spotify is trying to boost in part to reduce its reliance on music — royalty payments for which still comprise the largest part of its budget.
The increases come as some U.S. companies are announcing price cuts amid signs that consumer spending is flagging.
“Slower labor market momentum will continue to limit income growth and push more families to exercise spending restraint amid reduced savings buffers and higher debt burdens,” Gregory Daco, EY-Parthenon's chief economist, said in a note Friday. “Factoring increased price sensitivity, household spending momentum will gradually cool.”
