Spotify could be poised to increase monthly subscription prices for all subscribers. Ahead of the price hike, the world’s most popular music streaming service is asking for feedback from UK-based subscribers on the proposed increase. According to the price increase market research campaign, the Premium Individual, Duo and Family plans could all see prices rises.
In the survey, which is being sent out to customers right now, Spotify has proposed increasing prices for the Premium Individual, Duo and Family plans to £10.99, £14.99 and £19.99, respectively. In other words, that’s a £1, £2 and £5 hike to current subscription costs. The existence of the survey for existing subscribers was publicised by journalist Alex Hern.
Spotify does offer a free subscription tier, but it has some limitations. Those not on a paid-for tier are unable to download tracks to listen offline, unable to skip songs in a playlist, unable to wirelessly beam to Google Home and other smart speakers, and the biggest concession of all, free Spotify accounts include adverts between tracks.
As it stands, Spotify users need to fork-out £9.99 a month for the individual Premium plan, £12.99 for a duo membership (designed for couples, this bundles two Premium subscriptions together – as long as both users are living under one roof), and finally, £14.99 a month for the Family plan (up to six Premium accounts are included, all with access to ad-free music.
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The proposed price rise comes after Spotify Chief Legal Officer Horacio Gutierrez told MPs in a ‘Digital, Culture, Media and Sport’ parliamentary select committee that raising the monthly subscription cost above the current £9.99 a month could “push users into piracy”. With the survey now being mailed out to some customers, it seems Spotify wants to check the pulse of its customers to see whether Gutierrez is right.
In its most recent earnings call with investors, Spotify confirmed that price rises would be part of its strategy to grow the company going forwards.
CEO Daniel Ek said: “We have experimented with [price rises] for quite some time. We started two years ago so it’s not something that we’ve done in a rush. We did it in Norway two years ago, we’ve done it since in in Argentina, Australia and in many, many other markets throughout the time. But this is the time maybe where you’re seeing it’s actually becoming a real part of the strategy.”
As well as price rises for the existing subscription options, Spotify is expected to announce the monthly cost of its all-new Spotify HiFi plan, which includes CD-quality streams. This marks the first time that Spotify has challenged lossless streaming competitors like Amazon Prime Music HD and TiDAL.
If the Swedish company decides to move ahead with these new proposed price hikes, you can expect Spotify HiFi to be even pricier.