Spotify has confirmed prior rumors from April with the announcement of yet another price rise. Its premium plan will now cost $10.99 a month, but starting next month, it will cost $11.99, an increase of $1.
Furthermore, the cost of the Duo plan, which supports two users, will go up by $2 to $16.99. There will be a $3 increase to the family plan, making it $19.99 a month. The $5.99 monthly cost of the student plan will remain the same, though.
Although this price increase has only been revealed in the US for the time being, it wouldn’t be shocking if it were to eventually expand to other regions. Recently, Spotify membership charges increased in Pakistan as well. For example, the family plan used to cost Rs. 479 per month, but now it costs Rs. 579. We should anticipate that any price rises in Pakistan would be minimal in contrast to the recent hikes in the US, since this is nothing.
In relation to the price increase, Spotify is now more costly in the US than Apple Music, which charges $10.99 and $16.99 for individual and family memberships, respectively.
But given Spotify’s current price hike, Apple, its main rival, may follow suit and boost its own rates to match Spotify’s. This is a standard tactic in markets where businesses frequently match one another’s pricing.
Spotify’s income increased by 20% and its number of premium members increased by 14%, suggesting that the company is financially sound. This implies that the price increase is an attempt to profit even more from a period of great performance rather than a desperate move.
