Streaming Music Prices to Increase on Spotify
Streaming music through Spotify Technology SA is about to become more expensive as the company plans to boost the prices of its Premium ad-free options in many markets. Previously, Spotify offered its premium individual plan for $9.99 a month, but as part of its changes, it will increase the monthly price to $10.99.
Adjusted Premium Plans
In addition to the individual plan, Spotify will also be altering the prices of its other premium plans. The Premium Duo plan will see a $2 increase, bringing the monthly cost to $14.99. Similarly, the Premium Family plan will have a $1 increase, making the new monthly cost $16.99.
Notification and Grace Period
Following in Apple's Footsteps
Spotify's decision follows a similar move by rival company Apple Inc., which introduced price hikes in October. Spotify CEO Daniel Ek had previously indicated that the company was considering raising its prices, stating that they had "significant pricing power."
Impact on Stock Performance
Shares of Spotify saw a decline of nearly 6% in Monday morning trading, marking their third consecutive session of declines. The company is scheduled to report its earnings on Tuesday morning.
As streaming music prices increase on Spotify, it appears that the trend of raising prices is extending beyond music streaming and into video streaming as well.
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