Spotify is set to increase prices for ad-free users in the coming weeks, with plenty more countries to be impacted later in 2023.
Spotify, the biggest music streaming service, is expected to bump up its Premium package’s monthly fee in the US by a dollar, moving it from $9.99 to $10.99 in the coming days.
The Wall Street Journal reported the imminent price hike and it seems that, for now, only US subscribers will be affected. However, the WSJ also hinted that Spotify users in dozens of other markets could see a similar spike in their 2023 subscription costs.
This trend toward higher streaming costs isn’t new. Last year, Apple Music raised its subscription fee to $10.99, citing climbing licensing costs as the reason. Amazon Music and Tidal also followed Apple’s footsteps and upped their subscription charges.
Breaking: Spotify plans to raise its subscription price in the U.S. by $1. Other price increases are likely to roll out in dozens of markets globally in the coming months. https://t.co/yKbk1Syjf6
— The Wall Street Journal (@WSJ) July 21, 2023
Spotify hasn’t made an official announcement just yet, but it’s apparent that they’re aiming to pad their profit margins. Recent actions, like moving long-standing subscribers to direct payments and bypassing the Apple App Store’s cut, show their intention to pocket every cent of the revenue themselves.
The news shouldn’t be a surprise. Almost every other platform is upping its prices, and Spotify CEO Daniel Ek had already hinted at a potential price hike for Premium users in 2023.
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Still, for Spotify’s users, this isn’t exactly music to their ears. The burden of rising subscription costs across different platforms seems to be becoming heavier by the day.
This week alone, Peacock announced its first-ever price increase after logging losses in the billions, and YouTube Premium notified users about a $2/month hike for their US customers, bringing the monthly fee to $13.99 from $11.99 and upping the annual subscription by $20 to a total of $139.99.
Times are indeed getting challenging for customers juggling multiple subscriptions; from video streaming services like Netflix, Prime Video, Disney+, Hulu, Paramount+, ESPN+, to their preferred music streaming platform now, as well.
This increase is a long-awaited one for Spotify investors and the music industry, however, as they stand to gain from these heftier prices.
Plus, this could potentially translate into bigger paychecks for artists and record labels.