Spotify increases the premium subscription price for its users.

Spotify is increasing prices for its 200 million ad-free subscribers for the first time in more than a decade, as the platform announced. In the UK, individual plans will rise by £1 per month to £10.99, premium duo plans will be £14.99, and family plans will cost £17.99. The student plan remains unchanged at $5.99. Similar price hikes will apply to the US, Canada, and 49 other territories. In the US, individual plans will go up from “$9.99 to $10.99, premium duo plans from $12.99 to $14.99, family plans from $15.99 to $16.99, and the student plan from $4.99 to $5.99.”

The streaming service announced, “We are changing our Premium prices across a lot of locations throughout the world so that we can keep developing. We will be able to provide value to fans and artists on our platform thanks to these upgrades. Before the new prices go into effect, users will have a grace period of one month, unless they cancel before that time.”

Spotify had previously raised prices for US family plans and UK student, duo, and family plans in 2021, leaving individual subscriptions unaffected. Other streaming services like Peacock, Apple Music, Max, Netflix, and Paramount+ have also recently increased subscription costs. The new “Spotify Premium” cost now matches the monthly plans of competitors “Apple Music” and “Amazon Music.”

In an April earnings call, Swedish CEO Daniel Ek mentioned the possibility of raising prices in 2023, stating that when the timing is right, the increase would be well-received as the company continues to provide value for its customers. Earlier this year, the music giant cut 6% of its staff, citing a need to improve efficiency. Spotify will keep providing a free plan with ads. Currently, there are 515 million active Spotify users throughout 180 regions, with about 40% of them being paid members. On Tuesday, the corporation is expected to release its most recent financial figures.