Spotify hikes prices again

Spotify is once again raising its subscription prices, marking the second increase in less than a year. This move comes as streaming media companies face escalating business costs and as consumers grapple with persistent inflation.

Starting in July, Spotify’s US customers will see a $1 monthly increase for its ad-free premium plan, which will now cost $11.99 per month. This marks a 20% increase over the last two years. Spotify explained that the price hike is necessary to “continue to invest in and innovate on our product features and bring users the best experience.”

Other subscription tiers will also see price increases. The Duo plan, which allows two users to share a premium subscription, will rise by $2 to $16.99 per month. The family plan, which supports up to six users, will go up by $3 to $19.99 per month.

These changes follow recent price increases for international subscribers, cost-cutting measures, and several rounds of layoffs at Spotify, including significant cuts to its podcast division.

The rising costs of streaming services are not unique to Spotify. Many other companies, including Paramount, Warner Bros. Discovery (CNN’s parent company), NBCUniversal, and Netflix, have also raised their prices over the past year as they strive for profitability.

Following the announcement, Spotify’s shares (SPOT) rose by more than 2% in premarket trading, with the stock showing nearly a 60% increase for the year.

In summary, as operational costs climb and the pursuit of profit continues, streaming services are becoming increasingly expensive for consumers.