Spotify raises prices on premium plans to boost profits

Spotify, the world’s largest music streaming subscription company, is raising its prices again for U.S. premium accounts.

The price of ad-free individual plans is going up $1 to $11.99 a month, the company said Monday. Rates for group subscriptions also increasing, with duo plans increasing $2 to $16.99 a month and family plans going up $3 to $19.99 a month.

For students, premium prices will be unchanged at $5.99 a month.

“So that we can continue to invest in and innovate on our product features and bring users the best experience, we occasionally update our prices,” Spotify said in a blog post.

The new prices begin to take effect next month.

Stockholm-based Spotify offers a vast library of music, audiobooks and podcasts on its platform. The service has 615 million users, with 239 million opting to buy a premium subscription to listen to music ad-free. Those who do not want to pay can listen free with ads.

The company has been focused on increasing its profitability. The firm cut staff last year after overspending on podcast deals with influencers and newsmakers. In April, Spotify reported its largest quarterly gross profit.

Spotify stock rose 5% on Monday morning to $312.07 a share.

The Daniel Ek-run audio company joins other streaming services that have increased their prices, as investors have shifted their focus to profitability from subscriber growth.

Spotify last raised U.S. prices in July.

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