Spotify Premium gets second price hike within a year
What's the story
Spotify has announced a nearly 10% increase in its premium subscription pricing for US customers, marking the second such hike within a year.
Starting from July, the monthly premium pricing will rise from $10.99 to $11.99.
The Duo and Family plans will also see an increase to $16.99 (up $2) and $19.99 (up $3), respectively, while the Student plan remains at its current price of $5.99 per month.
Competitive landscape
New pricing surpasses Apple Music
Despite reporting a 20% increase in revenue, a 14% rise in premium subscribers, and a record quarterly profit, Spotify's new pricing structure places it above its main competitor, Apple Music.
Currently, Apple Music charges $10.99 and $16.99 for individual and family plans, respectively.
This price hike follows a similar announcement made last July when Spotify increased prices globally, including in the US, where the ad-free individual premium plan rose from $9.99 to $10.99 per month.
Subscriber impact
Spotify's price hike: Who will it impact?
Spotify has announced that premium subscribers will start receiving emails about the price increase in the coming month. As reported by TechCrunch, the new subscribers will be subject to the new pricing immediately, while existing subscribers won't see these changes until their July billing date.