Spotify raises selling prices on quality programs to boost income

Spotify, the world’s biggest tunes streaming membership firm, is elevating its costs once again for U.S. quality accounts.

The selling price of ad-free of charge particular person plans is going up $1 to $11.99 a thirty day period, the corporation explained Monday. Charges for team subscriptions also growing, with duo strategies rising $2 to $16.99 a month and family members ideas going up $3 to $19.99 a month.

For pupils, quality costs will be unchanged at $5.99 a month.

“So that we can continue on to make investments in and innovate on our product or service functions and provide buyers the very best practical experience, we from time to time update our price ranges,” Spotify mentioned in a web site post.

The new rates start out to consider result following month.

Stockholm-dependent Spotify provides a extensive library of audio, audiobooks and podcasts on its system. The provider has 615 million buyers, with 239 million opting to invest in a top quality subscription to pay attention to music advert-absolutely free. People who do not want to pay out can listen no cost with adverts.

The organization has been centered on expanding its profitability. The firm cut personnel very last calendar year after overspending on podcast promotions with influencers and newsmakers. In April, Spotify reported its premier quarterly gross profit.

Spotify inventory rose 5% on Monday morning to $312.07 a share.

The Daniel Ek-operate audio organization joins other streaming providers that have increased their selling prices, as traders have shifted their target to profitability from subscriber development.

Spotify last raised U.S. rates in July.