Spotify has announced that from May it will hike up the price of its premium service by more than nine per cent to £11.99.
The streaming giant told subscribers the increase will come into effect next month, so it can “continue bringing you the best experience”.
A Spotify spokesperson told City A.M. they did it “so that we can keep innovating and delivering value to fans, the music industry, and creators on our platform, we occasionally update our prices”.
Spotify continued: “We’ve begun communicating with existing subscribers in the UK to explain what this means for their account.”
This comes after Spotify launched a major cost-cutting exercise and attempted to redirect the business after a major investment in streaming especially.
Spotify told customers: “Starting on your billing date in May, your subscription price will change from £10.99/month to £11.99/month.”
“We’re increasing the price of Premium Individual so that we can continue bringing you the best experience. You’ll continue to get the benefits that you know and love today, like ad-free music listening and downloading to listen offline,” the streaming platform added.
It added that customers who pay for the service will also be able to use its newest features including an AI DJ, and “host real-time listening sessions with friends and family by starting a Jam on your phone and desktop.”
This comes amid a huge spike in streaming. The BPI (British Phonographic Industry) measured 179.6bn streams in the UK in 2023, double the number in 2018.
Streaming platforms made up around 67 per cent of global music industry revenue last year, according to IFPI (International Federation of the Phonographic Industry).
30 per cent of music streamers worldwide had a subscription to Spotify in 2023, according to Statista, making it a good bellwether for the industry.
In February Spotify said it has hit a new record number of subscribers. But it reported a €75m (£64m) loss as it continues its cost-cutting strategy. In December, Spotify’s finance chief Paul Vogel said he’d quit in the wake of mass layoffs, which was reportedly in the region of 1,500.