Spotify hikes prices again amid rising costs and inflation

Spotify is raising its prices again, less than a year after its last increase. The latest hike reflects rising business costs and persistent inflation, which has soured customer sentiment.

Starting in July, U.S. subscribers will see a $1 increase in the ad-free premium plan, bringing it to $11.99 per month — a 20% rise over two years. Spotify stated the price hike is necessary to “continue to invest in and innovate on our product features and bring users the best experience.”

Other subscription tiers are also affected. The Duo plan, for two users, will rise by $2 to $16.99 monthly, and the family plan will go up by $3 to $19.99 per month.

International subscribers recently faced similar increases as Spotify also cut costs and underwent layoffs, including significant reductions in its podcast division.

The trend of rising prices isn’t limited to Spotify. Streaming services across the board, including Paramount, Warner Bros. Discovery, NBCUniversal, and Netflix, have all raised their rates in the past year in pursuit of profitability.

Spotify’s (SPOT) shares rose more than 2% in premarket trading and are up nearly 60% this year.