Music streaming service Spotify has said it is raising prices for its 200 million ad-free subscribers for the first time in over a decade.
The move comes after other streaming services also increased subscription costs.
“So that we can keep innovating, we are changing our Premium prices across a number of markets around the world,
“These updates will help us continue to deliver value to fans and artists on our platform.
“Users will be given a one-month grace period before the new price becomes effective, unless they cancel before the grace period ends”. the music streaming service said on Monday.
The music giant said in the UK, prices will rise by £1 a month, to £10.99 for an individual plan, £14.99 for a premium duo plan and £17.99 for a family plan.
The price of a student plan remains unchanged at £5.99.
Similar price hikes also apply to the US, Canada and 49 other territories.
In the US, the cost will go up from $9.99 to $10.99 (£8.57) for those with an individual plan.
The premium duo plan will increase from $12.99 to $14.99, the family plan from $15.99 to $16.99, and the student plan from $4.99 to $5.99.
The company raised prices of US family plans and UK student, duo, and family plans in 2021. Individual subscriptions were previously unaffected.
Apple Music, Peacock, Netflix, Max, and Paramount+ have also recently raised subscription prices.
The new Spotify Premium cost matches the monthly plans of competitors Apple Music and Amazon Music.
In an April earnings call, Swedish CEO Daniel Ek said the company would “like to raise prices in 2023”.
“When the timing is right, we will raise it and that price increase will go down well because we’re delivering a lot of value for our customers,” Mr Ek said.
The music giant cut 6% of staff in January, citing a need to improve efficiency.
The company will continue to offer a free plan that includes advertising.
Spotify has 515 million active users in over 180 markets and about 40% of those users are subscribers.
The firm will publish its latest financial results on Tuesday.
Chioma Kalu
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