Spotify Hikes Prices Across US and UK as Profits Squeezed

Spotify has increased subscription fees in several countries including the UK and US.

Credits: REUTERS

The music streaming giant is hoping higher premium plan costs will improve profitability during economic uncertainty.

The US premium price rises include $1 more for the single plan, now $10.99. The premium duo plan rises to $14.99, family to $16.99 and student to $5.99. Spotify has made recent moves to boost margins with layoffs and podcast unit restructuring after years of big investments.

The price hikes come as streaming services face investor pressure to increase profitability. Rivals Apple Music, Amazon Music, Tidal and YouTube have also increased costs in 2022. Spotify raised prices in 46 countries last year too. The Swedish company reports Q2 results on Tuesday.

Spotify indicated in April it would raise prices in 2023. On Monday it announced the increases in multiple countries. The company aims to boost profitability amid uncertain economic conditions. But competitors have also been hiking subscription costs. After years of prioritising growth, streaming services now face demands for better margins.

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• Spotify increasing premium subscription prices in US, UK and other countries

• Part of effort to boost profitability amid economic uncertainty

• Follows similar moves by streaming competitors like Apple Music

Source: REUTERS