Spotify is hiking prices for its Premium plans in the U.S. for the second time in less than a year in the audio streaming giant's latest move to expand its margins.
The Sweden-based firm announced Monday it will raise the monthly subscription price for its popular Premium individual plans to $11.99, up from $10.99. Spotify's duo plans will increase to $16.99 from $14.99, and family plans will jump $3 to $19.99. The company kept its student plan price in place at $5.99.
Spotify said subscribers will receive an email within the next month, notifying them of the price adjustments for impacted accounts. The email explains, "We're increasing the price of Premium Individual so that we can continue to invest in and innovate on our product offerings and features."
When reached by FOX Business for comment, Spotify pointed to the beginning of its blog post, which states, "So that we can continue to invest in and innovate on our product features and bring users the best experience, we occasionally update our prices."
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Spotify last raised prices in July 2023, which was the first time it increased them since the service launched in the U.S. in 2011.
Spotify has been trying to boost its margins in recent months by lowering marketing spending and through layoffs, after relying on promotions and hefty investments to drive user growth.
The company offers an advertising-supported free service with limited features and a subscription-based paid service that gives access to all its functionality, with premium subscribers accounting for most of its revenue.
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Analysts expect the streaming giant could drive further growth by offering tailored subscription plans based on consumer preferences in verticals such as music, audiobooks and podcasts.
The company's quarterly gross profit topped 1 billion euros ($1.08 billion) for the first time in April after it reined in marketing spending.
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Its premium subscribers rose by 14% to 239 million, and it forecast monthly active users at 631 million for the second quarter.
FOX Business' Greg Norman and Reuters contributed to this report.
