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Less than a year after its last price increase, music-streaming service Spotify is raising the cost of its Premium, Duo, and Family plans in the US by at least a dollar a month.
This means $10.99 Premium subscriptions now cost $11.99 a month, a 9% price hike. Duo subscriptions now cost $16.99, up 13% from $14.99. Family plans now cost $19.99, more than a 17% price increase. Student plans are still $5.99 a month. US users will soon receive an email detailing this week's changes.
Spotify says the move will help it "continue to invest in and innovate on our product features and bring users the best experience." In recent months, Spotify has bundled audiobook listening into Premium and has been testing new features like music videos and AI-powered playlists that can be generated with a simple text prompt.
Spotify users who don't want to pay the higher rates can cancel their subscriptions or try an alternative streaming service like Apple Music or Tidal. Those currently on free trials will get one month at the old rate and then be forced to pay the new rate or cancel.
Spotify may be able to hang on to its users as new data from research firm Antenna says Spotify users are much less likely than video-streaming subscribers to cancel their plans, Bloomberg reports, in part because it has a much wider content library compared with video services.