Spotify’s 10% price hike has officially gone into effect as of Monday, the first such hike in a decade for the streamer.
New subscribers will now pay $10.99 per month for the music streaming service’s ad-free premium plan, an increase of $1. Existing subscribers are being given a “one-month grace period before the new price becomes effective, unless they cancel before the grace period ends,” according to Spotify.
Users who are currently on a trial offer will have one month at the original price of $9.99 a month after their trial ends. Then their plan will increase to $10.99 a month. Gift cards can still be used even if they were purchased at the previously lower price but can only be used on the Premium Individual plan.
Spotify’s other tiers will also be impacted. Along with the Premium Individual plan, the Premium Student and Premium Family plans will be increasing by a dollar, making those plans $5.99 a month and $16.99 a month, respectively. As for the Premium Duo plan, which allows two users to share an account, that has been increased by $2 for a new monthly price of $14.99.
The price increase is currently in effect for several countries, including the United States, Canada, the United Kingdom and Australia. The streaming service’s free plan, which comes with ads and offers a limited experience, will remain the same.
On Friday, the Wall Street Journal reported the price increase. That day, shares in the company fell to four-tenths of a percent. But on Saturday, shares jumped to $176.32 per share in the wake of the news.
Spotify has long been the one holdout when it comes to music streaming price hikes until now. In October, Apple raised the price of its Apple One bundle — which includes subscriptions to both Apple TV+ and Apple Music — by $2, raising the individual plan from $14.95 a month to $16.95 a month. YouTube Music Premium also quietly hiked its price from $9.99 a month to $10.99 a month. The music streaming app has since bumped its prices up to $13.99 a month.
