Spotify raises premium subscription price for millions

Spotify is raising prices for its 200 million ad-free subscribers for the first time in over a decade, the platform has announced.

In the US, the cost will increase from $9.99 to $10.99 (£8.57) for those with an individual plan.

Similar price hikes also apply to the UK, Canada, Australia and 49 other territories.

The move follows other streaming services which have also increased subscription costs.

"So that we can keep innovating, we are changing our Premium prices across a number of markets around the world," the music streaming service said on Monday.

"These updates will help us continue to deliver value to fans and artists on our platform."

In the US, the Premium Duo plan will increase from $12.99 to $14.99, the Family plan will increase from $15.99 to $16.99, and the Student plan will increase from $4.99 to $5.99.

Premium subscribers in the UK will pay an extra £1 per month, according to The Verge.

Spotify said users "will be given a one-month grace period before the new price becomes effective, unless they cancel before the grace period ends".

The company raised prices of US family plans and UK Student, Duo, and Family plans in 2021. Individual subscriptions were previously unaffected.

Apple Music, Peacock, Netflix, Max, and Paramount+ have also recently raised subscription prices.

The new Spotify Premium cost matches the monthly plans of competitors Apple Music and Amazon Music.

In an April earnings call, Swedish CEO Daniel Ek said the company would "like to raise prices in 2023".

"When the timing is right, we will raise it and that price increase will go down well because we're delivering a lot of value for our customers," Mr Ek said.

The music giant cut 6% of staff in January, citing a need to improve efficiency.

The company will continue to offer a free plan that includes advertising.

Spotify has 515 million active users in over 180 markets and about 40% of those users are subscribers.