:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2150432691-9ed17a21c11148239da7a64d078063a4.jpg)
Key Takeaways
- Streaming music provider Spotify on Monday announced a price increase for its Premium customers in the U.S., and shares rose.
- The cost for an individual subscriber will go up by $1 to $11.99 per month, and more for Duo and Family subscribers.
- The new rates take effect in July, one year after the company last raised subscription prices.
Shares of Spotify Technology (SPOT) rose in intraday trading Monday after the streaming music provider announced an increase in subscription prices in the U.S.
The company reported the cost for individual Premium subscribers will increase to $11.99 per month from $10.99. The Duo plan is rising to $16.99 from $14.99, while the Family plan jumps $3, to $19.99 from $16.99. The student rate will stay the same at $5.99.
Spotify To ‘Invest in and Innovate on Our Product Features’
Spotify said that the move was made so it could “continue to invest in and innovate on our product features and bring users the best experience.” It noted that Premium subscribers would be receiving an email over the next month advising them of the change.
A Bloomberg report in April said that Spotify price increases were coming to help pay for audiobooks, which it began offering late last year.
The company’s Premium service accounted for 89.3% of its first-quarter sales, bringing in 3.25 billion euros ($3.54 billion), which was a jump of 20% from the year before. Total Premium monthly active users (MAUs) were 14% higher at 239 million.
The new rates take effect in July, one year after the company last raised subscription prices.
Spotify shares were up 4.1% to $308.98 at 2:14 p.m. ET Monday. They have climbed nearly 65% this year.