Why Is Spotify Premium Going Up?

Spotify has presented a platform for artists across the globe. The streaming app helped discover indie musicians, underground stars, and international musicians while breaking the language barrier.

Entering the Spotify charts in itself is a validation that the song is popping. Spotify is not just a streaming portal but also a platform that allows artists autonomy to generate revenues.

As per the latest updates, Spotify pays artists an average of $0.003 to $0.005 per stream. This works on a royalties split of 70/30%, meaning the artist makes a 70% share while Spotify takes the rest 30% commission. This helps the artists, producers, songwriters, and copyright holders get their dues.

With Spotify’s launch in 2006, the platform was entirely dedicated to promoting artists by creating playlists based on user’s search results, AI-powered algorithms to push the artist’s profile, making exclusive contracts with record label companies for promotional song releases, and more. At the same time, Spotify has also framed an efficient hub for podcasts.

After 12 years of premium subscription launch in 2011, Spotify has announced a price hike for premium services. The Premium Ad-free subscription plan is increased from $9.99 to $10.99.

The company issued an official statement on the reason behind this decision–

 “So that we can keep innovating, we are changing our Premium prices across a number of markets around the world.”

“These updates will help us continue to deliver value to fans and artists on our platform.”

According to Daniel Ek, CEO of Spotify, the company wants to boost its profitability in the last April earnings meeting. The price hike is their strategy in uncertain markets.

Just in the past few months, several streaming sites have hiked their subscription prices, adjusting the rates to survive in the current economy. 

Apple was the first music streaming portal to announce a $1 hike last October. Amazon Prime followed suit in January, while Tidal (launched by Jay Z) and Youtube Music Premium announced increased subscription plans in July 2023.

Price Breakdown Of The New Spotify Premium

Here is the breakdown as per the new hike policy–

The Premium Duo membership is a discount plan for two people who live together. So instead of paying $11 each, the total price for two people is $15, which comes to only $7.5 each. Both will have their own premium account, and also they won’t have to share passwords.

Premium Student is the cheapest plan, especially for people who are not earning yet and are buried under education loans. The student has to verify their details as per Spotify’s policies, post which they can enjoy ad-free streaming.

Premium Family is the most convenient plan for up to 6 premium accounts living under the same roof.

What is your take on the price hike? Would you continue your subscription or opt for free services? Let us know your thoughts in the comments section below.