Spotify subscribers will embrace $1 more per month for its ad-free premium plan, raising the total cost to $12.99 per month.
The popular streaming service has confirmed that the new price will come into effect for existing subscribers in September.
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Spotify’s other subscription options, including the family and student plans, have also faced a price hike with an extra $1 per month.
While the monthly cost of Duo, which allows two people to split a premium plan, has increased by $2 to $14,99.
“We’re increasing the price of premium individual so that we can continue to invest in and innovate on our product offerings and features and bring you the best experience,” Spotify said in an email to customers on Tuesday.
The company said the “market landscape has continued to evolve”, and the price hike “will help us to deliver value to fans and artists on our platform.”
Since the company first launched in 2008, it has gained over 200 million Premium subscribers.
Spotify is one of many streaming services that adjusted its subscription price, with Netflix Australia banning sharing passwords and introducing more affordable subscription options.
Netflix Australia has witnessed significant growth in subscribers after the implementation of the price change and shared password ban.
Experts say streaming services are no longer chasing subscribers. Instead, investors are pressuring them to make money off the services.
Despite the risk of losing subscribers, streaming giants including Disney+, Netflix, Peacock and Paramount+, have all increased the prices of their services in recent months.
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