Spotify Hikes U.S. Premium Prices to $11.99

Spotify is set to raise its subscription prices in the U.S. this July, marking the second increase within a year. Starting next month, the cost of the Premium plan will jump from $10.99 to $11.99, reflecting an almost 10% hike. Additionally, the Duo and Family plans will rise to $16.99 and $19.99, representing increases of $2 and $3 respectively, while the Student plan remains unchanged at $5.99 per month.

This latest price adjustment comes as Spotify enjoys robust financial health. The streaming giant recently reported a 20% surge in revenue, a 14% increase in premium subscribers, and a record-breaking quarterly profit. Despite the hike, Spotify's new pricing structure now surpasses that of its major competitor, Apple Music, which continues to offer its individual and family plans at $10.99 and $16.99 respectively.

Spotify's decision follows a similar move made last July, when it raised prices across various global markets, including the U.S. At that time, the individual Premium plan increased from $9.99 to $10.99 per month, with corresponding hikes for the Duo, Family, and Student plans.

Existing premium subscribers will be notified via email about the upcoming price changes within the next month. The new pricing takes effect immediately for new subscribers, while existing subscribers will see the changes on their July billing statements.

With these adjustments, Spotify aims to balance its growing operational costs while continuing to enhance its service offerings, ensuring that it remains competitive in the dynamic music streaming market.