Spotify Raises Premium Plan Prices in an Effort to Boost Profitability

Spotify Raises Premium Plan Prices in an Effort to Boost Profitability

Spotify Technology has announced that it will be raising prices for its premium plans in several countries, including the United States and United Kingdom. The decision comes as the music-streaming company looks to enhance its profitability in an uncertain economic climate. The price adjustments will result in a $1 increase for Spotify’s premium plans in the US, with the premium single plan now starting at $10.99, the duo plan at $14.99, the family plan at $16.99, and the student plan at $5.99.

Margin-Boosting Measures Implemented

In recent months, Spotify has taken steps to improve its profit margins. These include implementing a series of layoffs and restructuring its podcast unit, which had previously received substantial investments. The decision to raise prices aligns with the company’s strategy to prioritize profitability after years of focusing on user growth. This move follows similar price increases by competitors such as Apple,, Tidal, and YouTube.

Global Impact of Price Adjustments

Last year, Spotify raised prices in 46 countries, and it had already indicated in April that further price increases would occur in 2023. The recent adjustments in the US and UK are part of this ongoing effort. While the impact of these price changes may vary across different markets, it is clear that streaming services, both audio and video, are facing increased pressure from investors to improve their profitability.

Spotify Premium Plans in India

In India, Spotify offers a range of premium plans at affordable prices. The Premium Mini plan costs just Rs. 7 per day, but it is a one-time plan that only allows for connectivity with a single mobile device at a time. Other plans include the Premium Individual plan at Rs. 119 per month, the Premium Duo plan at Rs. 149 per month, and the Premium Family plan at just Rs. 179 per month. All three of these plans come with a one-month free trial, allowing users to experience the benefits of Spotify Premium before committing to a paid subscription.

As Spotify prepares to release its second-quarter results, the company’s decision to raise prices indicates its commitment to improving profitability in a challenging economic landscape. By adjusting premium plan prices, Spotify aims to strike a balance between delivering a high-quality music-streaming experience to its users and meeting the demands for increased profitability from investors.


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