After 12 years unchanged, streaming music pioneer Spotify (SPOT) -) has announced that it will be implementing a price change for its subscription services.
The price is going up by $1, from $9.99 to $10.99 a month for a single user, while Premium Duo (for two users) is going to $14.99, Premium Family goes to $16.99, and Premium Student goes to $4.99.
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"So that we can keep innovating, we are changing our Premium prices across a number of markets* around the world. These updates will help us continue to deliver value to fans and artists on our platform," the company said in the news release.
Current customers of the streaming service will get a one-month grace period before the new price kicks in, according to an FAQ on the Spotify site.
While Spotify did miss its earnings goals in April and went through a downsizing in January, the price hike is more likely due to it simply being time for one. During the company's April earnings call, CEO Daniel Ek mentioned the possibility in response to a question, saying, "And again, I think we're ready to raise prices. I think we have the ability to do that, but it really comes down to those negotiations."
Spotify's stock price has been on a downward trend since late 2021, at one point dipping as low as $71 a share. While the price has been slowly creeping back up ($171.71 at the time of this writing), the company still has work to do to regain its peak ($364.59 in February 2021).
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