Spotify Technology (SPOT) on Monday announced plans to raise its premium subscription prices for the second time in about 12 months.
The company’s individual plan was lifted by a dollar to $11.99 after the audio streamer in July 2023 raised the price to $10.99. The new price will be reflected in US subscriber bills beginning next month, according to Spotify.
The company is raising prices so that it can continue to “invest in and innovate on” product features, according to a picture of an email that will be sent to subscribers.
Prices were raised to $16.99 from $14.99 for Premium Duo and to $19.99 from $16.99 for the family plan. The cost for students will remain at $5.99.
In April, Spotify swung to a larger-than-expected first-quarter profit on a 20% jump in revenue that also surpassed analyst views.
Premium revenue climbed 20% in the March quarter, led by 14% subscriber growth that was just shy of the Visible Alpha consensus. The number of aggregate monthly active users grew 19% but trailed the company’s guidance and consensus.
Interim Chief Financial Officer Ben Kung said in April that Spotify’s “recent price increases and improving product mix shift” accelerated Premium’s average revenue per user growth to 7% on a year-over-year currency-neutral basis, according to prepared remarks posted on Spotify’s website at the time.