Spotify Will Be Raising The Price Of Its Monthly Subscription By Around $1.00 In The US And £1.00 In The UK
For the second time within a one-year period, Spotify will be increasing premium membership subscription prices. Last summer marked the first time in 10 years since the app hiked the price of its premium plan. Previously, the premium plan cost £9.99 per month in the UK. However, it was raised to £10.99 per month. In the US, the premium subscription plan increased from $10 to $11 monthly.
According to a Bloomberg report, Spotify intends to raise prices in five markets, including the UK, Australia, and Pakistan, by the end of April. Additionally, they plan to implement price adjustments in the US later this year. Subscription prices will be increasing to £11.99 in the UK and $12 in the US. The company attributes this change to their commitment to innovation and providing value to fans, the music industry, and creators on their platform.
In a conversation with City A.M., a Spotify spokesperson said that the subscription price hike was done “so that we can keep innovating and delivering value to fans, the music industry, and creators on our platform, we occasionally update our prices” and continued, “We’ve begun communicating with existing subscribers in the UK to explain what this means for their account”.
The IFPI (International Federation of the Phonographic Industry) reported last year that around 67% of music industry revenue was made by streaming platforms.
Also to be noted, last week Spotify demonetized any songs on the platform with under 1000 streams.
While Spotify claims the intention is “Modernizing their royalty system“, many artists are not pleased. In an interview with GQ Nine Inch Nails‘ Trent Reznor said streaming has “mortally wounded” many artists: “I think the terrible payout of streaming services has mortally wounded a whole tier of artists that make being an artist unsustainable“.
Cover image credit: Beata Zawrzel/NurPhoto
