Spotify considers raising subscription prices in the US: how much could they go up?

Following Apple Music and YouTube, Spotify may raise subscription prices in the US, CEO Daniel Ek said, according to a report by Variety.

This could be a quick fix to remedy, at least partially, the low royalty payments most musicians receive from streaming services.

Spotify considers raising subscription prices in the US: how much could they go up?

On Monday, Apple Music increased its subscription price to $10.99 per month for individuals, while the family plan jumped $2 to $16.99 per month, among other plan increases. On the other hand, YouTube is increasing the price of its premium family plan from $17.99 to $22.99 per month in the United States.

Variety revealed that, during Spotify’s third-quarter earnings call, co-founder and CEO Daniel Ek said the company is also considering a raise.

On raising the subscription price in the US, the world’s largest music market, Ek noted: “[I]t’s something we will [discuss] with our label partners. I feel good about this upcoming year, and what it means about pricing for our service.”

Spotify Premium Membership is priced at $9.99 per month currently, while the family plan, which supports up to 6 accounts, is $15.99. Ek did not reveal how much the increase will be or when it would take effect, but it is expected that the prices of his plans could match those of Apple Music.

According to the third quarter report, Spotify added more users than expected in its free and paid tiers, particularly in Latin America, reported with Variety.

Total monthly active users grew 20% to 456 million, 6 million above Spotify’s previous guidance, a net addition of 23 million, representing its strongest growth in the third quarter to date. Meanwhile, Spotify Premium subscribers reached 195 million, a gain of 7 million in the period, 1 million more than anticipated.