Spotify Plans More Price Increases in 2024: Report

Spotify will increase prices in five markets later this month and do the same in the U.S. later this year, Bloomberg reports. Spotify previously raised the price of premium individual plan by $1 in North and South America, Europe, and Asia last year.

The initial round of new price hikes — $1 a month for individuals, $2 a month for duos and families — will hit the U.K., Australia, and Pakistan, among others, according to Bloomberg. 

A rep for Spotify declined to comment.

In recent years, music rightsholders have regularly been calling for streaming services to raise prices. Appearing at a Morgan Stanley conference last year, Warner Music Group Robert Kyncl noted that the price of individual streaming subscription plans continued to lag behind inflation.

“We are the lowest (cost) form of entertainment,” Kyncl said of music. “We have the highest …engagement, highest form of affinity and lowest per hour price. That doesn’t seem right. It should change in an orderly fashion.” 

Last year, Barclays estimated that a 10% price increase by all music subscription services would increase Universal Music Group’s revenue by $430 million and Warner Music Group’s revenue by $256 million. 

Spotify moved to raise prices — $10.99 a month for individuals, $16.99 a month for families — in July of 2023. “The market landscape has continued to evolve since we launched,” the company wrote in a blog post. “So that we can keep innovating, we are changing our Premium prices across a number of markets around the world. These updates will help us continue to deliver value to fans and artists on our platform.”

Bloomberg also reported on Wednesday (April 3) that Spotify plans to introduce a new payment tier: $11 a month for individuals who only want access to music and podcasts. Those users will have to pay separately for audiobooks.  

Spotify turned a profit in the third quarter of 2023, its first in a year. The company posted an operating loss of €75 million (around $80 million) in the fourth quarter. It now boasts more than 600 million users.

Spotify’s stock price is up about 5.5% ($284) in morning trading, following a brief spike of as much as 7.4%.