In case you missed it, earlier this week, Apple announced it is raising prices on its music streaming service, YouTube did the same last week, and now it sounds like Spotify is next. If so, the days of affordable music streaming could be coming to an end.
Spotify just posted its third-quarter earnings report, showing continued growth in subscribers, revenue, and more. However, shortly after, CEO Daniel Ek casually said he would like to increase pricing for subscribers in the United States.
And while price hikes are something no one wants to hear about, Spotify’s individual plan has remained at $9.99 per month since 2011, and I’m honestly surprised it took this long. That said, we can assume many others will follow suit now that Apple has made the first move.
Daniel Ek said about price increases for Spotify, “it’s a conversation we will have in light of these recent developments with our label partners.” He’s referring to pricing in the United States, which is still $9.99, while many other regions around the globe have seen price hikes over the years. For the record, Apple mentioned changes and negotiations with label partners as its reason for increasing the cost of Apple Music.
However, we do have some short-term good news. In an interview with The Wall Street Journal, Spotify’s CEO said these price increases shouldn’t be expected until sometime in 2023. So while the company isn’t immediately raising prices to follow Apple, it’s coming sooner than later.
As things stand today, Spotify Premium for individual users is still $9.99 per month, while Apple now charges $1 more, costing $10.99. Those with a family account saw a $2 increase from Apple and will pay $16.99 monthly. We’ll have to wait and see if Spotify matches those prices or makes things even more expensive.
via Business Insider