Spotify has declared that it is increasing subscription prices for U.S. customers for the second time in the past year
The music streaming company has announced that premium pricing would increase from $10.99 to $11.99 in July.
This is a nearly 10% increase from the previous price. It has been decided that the student plan will continue to be priced at $5.99 per month, while the Duo and Family plans will be increased to $16.99 and $19.99, respectively, representing increases of $2 and 3 dollars.
The price increases come when Spotify is in relatively good condition. The company recently reported a 20% increase in sales, a 14% increase in premium customers, and a record quarterly profit.
On the other hand, the new pricing structure places it in a position of superiority to its primary competitor, Apple, which, at least for the time being, continues to charge $10.99 and $16.99 for individual and family plans, respectively.
A similar revelation was made by Spotify in July of last year when it unveiled a swath of price hikes around the world. One of these price-hikes was in the United States, where the ad-free individual premium plan increased from $9.99 to $10.99 per month. Additionally, the Duo, Family, and Student plans increased.
Within the next month, Spotify has informed its premium users that they will begin getting an email informing them of the price rise.
Additionally, the company confirmed to TechCrunch that the new premium pricing is applicable for new subscribers as of today. However, it will only apply to existing users beginning with their billing date in July.