By Natalie DeCoste
Spotify users could see their subscription cost for the popular music streaming service go up based on which plan they use.
Spotify announced that it is increasing the price of many of its subscriptions this week across the UK and parts of Europe. In the U.S., the company is raising the price of its Family Plan.
Users have begun to receive emails about the price increase and its impact on their subscription. The U.S. Family plan will increase by $1, while the standard Spotify Premium plan will remain untouched. The price of the Premium Student, Duo, and Family plans in Europe and the UK are set to increase by £1-2.
Existing Spotify users have a little time before the price increases kick in. All of the existing Spotify subscribers in the U.S., Europe, and UK users of Spotify will have a one-month grace period before prices are automatically increased. This means that existing subscribers will not see an increase during the June period of billing.
“We offer a variety of subscription plans tailored to our users’ needs, and we occasionally update our prices to reflect local macroeconomic factors and meet market demands while offering an unparalleled service,” said a Spotify spokesperson to The Verge.
The company had reported growth in subscribers during its last earnings report. The report indicated the company now has 155 million premium subscribers and 345 million monthly active users. That is a 24 percent and 27 percent year-over-year increase, respectively.
Despite the growth in user base, the average revenue per user fell 8%, or $5.13. The fall in revenue is due to the company’s discounted plans used to lure in its new subscribers and capture new markets.
The company is set to release its newest earnings report this Thursday, which may give further insight into the reasoning behind the price increase.
