(Pocket-lint) - Spotify is raising its rates in the US, UK, and parts of Europe.
According to several reports, the price hikes will affect the Student, Duo, and Family plans across in the UK and Europe, while Family subscriptions in the US are getting an increase from 30 April 2021. Single Spotify Premium subscriptions will remain unchanged. Here's what you need to know.
How much does Spotify cost now?
Spotify confirmed its new price increases are coming to the US, the UK, and select other markets. It will likely make them official when it reports quarterly earnings on Wednesday 28 April 2021. In a statement to the media, it said: "We offer a variety of subscription plans tailored to our users' needs, and we occasionally update our prices to reflect local macroeconomic factors and meet market demands while offering an unparalleled service".
Here are Spotify's April 2021 price increases:
Spotify Family plan is increasing from $14.99 to $15.99 per month in the US. Duo, Student, and Premium pricing will remain the same.
Spotify Student is increasing from £4.99 to £5.99 per month. A Duo subscription, which is for two people, is increasing from £12.99 to £13.99 a month. The Family plan, which is for up to six accounts, is going from £14.99 to £16.99 a month.
Similar price increases are hitting some European countries, including Ireland. Student and Duo are increasing to €5.99 and €12.99 per month, respectively, which equals an increase of a couple of Euros. The Family plan is increasing from €14.99 to €17.99 per month.
Some countries in Asia and South America will also see similar price hikes.
Note: Spotify also has a free tier that is supported by advertising. It allows anyone to listen to music and podcasts free. Spotify's various premium tiers remove the advertisements and offer fewer restrictions than the free tier. For more about how Spotify works, see our guide here.
When does the new pricing start?
New Spotify subscribers will see the new pricing starting from 30 April 2021. But all existing Spotify subscribers in the US, UK, and Europe will have a one-month grace period before prices are increased. That means existing subscribers will see an increase starting in the June 2021 period of billing.
Why is Spotify raising its prices?
Spotify is set to post its latest earnings later this week, and we expect the company to use that moment to provide more details about why its prices are increasing. But it's worth noting Spotify reported a loss of €125 million in its most recent quarter. (The average revenue per user also fell by 8 per cent.) That said, it also revealed it now has more than 155 million subscribers, making Spotify is one of the biggest streaming services.