Spotify’s latest price hike has resulted in a 5% increase in its stock price, with shares reaching over $310 on Monday. The music streaming company has announced that it will raise the prices of its subscription plans in the U.S. starting in July. The individual plan will cost $11.99 per month, up from $10.99, the Duo plan will increase from $14.99 to $16.99, and the family plan will go up by $3 to $19.99 per month. Spotify has stated that the price hikes will allow it to invest in and innovate on its product offerings and features to provide users with the best experience.
Spotify is expected to introduce a new $11 monthly subscription tier that will offer music and podcasts without audiobooks. Users on this plan will have to pay for audiobooks separately. Additionally, the company will roll out a new “supremium” plan that includes high-fidelity audio at a higher price. However, details about this plan have not been released yet, as it has been in the works since 2021. Spotify currently has 239 million subscribers, an increase of 14% year-over-year, as reported in its first quarter this year.
Last year, Spotify also raised its subscription prices, with the individual plan reaching $10.99. The company now charges more for its premium, ad-free subscriptions compared to competitors like Amazon and Apple, which charge $9.99 and $10.99 for their individual plans, respectively. Spotify’s decision to offer 15 hours of audiobooks per month was in response to competition from Amazon’s Audible. This move aimed at appealing to a wider audience has been successful, leading to an increase in subscribers for the company.
Spotify’s plans for further price hikes and the introduction of new subscription tiers indicate its commitment to providing users with a variety of options that cater to their different preferences and needs. The company’s focus on innovation and investment in its product offerings reflects its desire to stay ahead of the competition and maintain its position as a leading music streaming service. As Spotify continues to expand its offerings and attract more subscribers, its stock price is likely to continue to rise, reflecting investor confidence in the company’s growth potential. Investors will be keeping a close eye on Spotify’s future announcements and developments to gauge its performance in the increasingly competitive music streaming industry.
