Spotify is raising the price of its single-account premium plan for the first time since 2011 and is increasing other services as well.
In the UK, subscriptions will increase £1 per month to £10.99 for the individual plan, £14.99 for the premium duo plan and £17.99 for the family plan.
The price for the student package remains unchanged at £5.99.
It follows other streaming services that have also raised subscription costs.
The same price increase applies to the United States, Canada and 49 other territories. In the US, the cost will drop from $9.99 to $10.99 (£8.57) for those with an individual plan.
The premium duo service will drop from $12.99 to $14.99, the family package from $15.99 to $16.99, and the student package from $4.99 to $5.99 dollars.
In its latest financial results, Spotify said it beat forecasts as it added 36 million monthly active users between April and June, bringing the total to 551 million. Of these, 220 million are paid subscribers.
However, the company’s pre-tax losses amounted to 241 million euros (£207.3 million) in the three months, compared with a loss of 90 million euros in the same period last year. Revenue came in at €3.1 billion but exceeded analyst expectations of €3.2 billion.
Spotify CEO Daniel Ek said the company had a “very successful quarter,” although the share price fell more than 11% after the earnings reveal.
Ek discussed the role that artificial intelligence (AI) could play in the future, such as in summarizing lengthy podcasts or helping to reduce the cost and difficulty of producing audio ads.
In February, Spotify unveiled its “AI DJ”, billed as a personalized “DJ in your pocket” that will offer “curated music programming with commentary”.
On Monday, Spotify said it was raising prices “to help us continue to deliver value to fans and artists on our platform.” Spotify says users “will get a one-month extension before the new price goes into effect, unless they cancel before the end of the renewal period.”
The music giant cut 6% of its workforce in January, citing the need to improve efficiency.
Spotify has reduced its reliance on big-name deals and expensive original content that has affected its results, with the Duchess of Sussex’s podcast being among the prominent casualties.
In 2020, Meghan and Prince Harry signed an exclusive deal worth around $20 million.
It ended last month after the Duke and Duchess’ Archewell Audio parted ways with Spotify by a mutual decision. A deal with Barack and Michelle Obama’s production company also ended last year.
When the time is right, we will increase it and this price increase will reflect well because we provide a lot of value to our customers,” Mr. Ek said.
The company has increased prices for family plans in the US and student, duo and family plans in the UK in 2021. Previous individual subscriptions are not affected.
Apple Music, Peacock, Netflix, Max, and Paramount+ have also recently increased their subscription prices. Spotify Premium’s new cost matches the monthly plans of rivals Apple Music and Amazon Music.
The company will continue to offer a free plan that includes advertising.