According to The Wall Street Journal, Spotify, the audio streaming giant, plans to raise its monthly subscription price in the U.S. by USD1, a change that has been long-awaited as it strives to achieve consistent profitability. The company is expected to announce the price increase next week, with its ad-free premium plan rising from USD9.99 to USD10.99 a month in the U.S. Additionally, similar price hikes are expected to be introduced in numerous global markets in the upcoming months.
This move by Spotify is likely to prompt other streaming services to follow suit and increase their prices as well. Wedbush Securities analyst Daniel Ives referred to the price increase as long overdue, expecting it to pave the way for further adjustments among rival companies.
Both audio and video streaming services are currently facing pressure from investors to prioritise profitability over user growth. For the last fifteen years, USD9.99 per month has been the standard price for an individual subscription, granting users access to a vast library of music from around the world.
Spotify’s premium plan allows a single user to enjoy ad-free listening both online and offline, with additional charges for extra users. Music industry executives have been urging streaming services to not only raise their basic monthly prices but also explore various pricing options and tiers to attract more paying users. This strategy would not only benefit the streaming services but also create more revenue opportunities for labels and artists.
In Malaysia, the Premium Plan has had its price hiked before. When it was first launched here in April 2013, it was RM14.90 per month, and in 2022, the price was increased by RM1 to RM15.90. With this news, we expect at least another RM1 increase.
