Spotify hits users with another price hike in less than a year

Get ready to dig a little deeper into your pockets for your playlists. Spotify, the popular music streaming service, is raising subscription prices in the U.S. again, marking the second increase in less than a year.

Price increases across the board

Starting in July, individual Premium plans will jump from $10.99 to $11.99 per month, a 10% increase, said Spotify in a statement. Duo plans, which allow two users to share an account, will rise to $16.99 from $14.99. Family plans will see the biggest hike, increasing by $3 to $19.99 per month. Notably, the student plan remains unchanged at $5.99. Expect an email notification about the changes in the coming weeks.

“Building the best experience”

Spotify claims these price hikes are necessary “to continue to invest in and innovate on our product features and bring users the best experience.” They put Spotify above its main competitor, Apple Music, which currently charges $10.99 and $16.99 for individual and family plans, respectively.

Last July, the company implemented similar hikes around the world, including in the U.S. where the ad-free individual premium plan went up from $9.99 to $10.99 per month; and the Duo, Family, and Student plans all went up too.

Streaming squeeze: rising costs vs. consumer strain

The timing of these price increases might raise eyebrows. Streaming companies face rising operational costs, but consumers are also still feeling the pinch of inflation, with signs of spending slowing down. Despite this challenging environment, the Swedish company reported first-quarter earnings that came in above expectations after a year of cost-cutting. Spotify also reported a record quarterly profit and strong margin improvement.