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In a bid to keep its finances in check, Spotify is gearing up to raise its subscription price for U.S. subscribers by $1, a move that comes after years of financial highs and lows. The price hike is set to push the cost of Spotify’s ad-free premium plan from $9.99 to $10.99 per month, marking the company’s first increase since its inception.
The decision to raise prices was not an easy one for the music-streaming giant, as it has struggled to maintain consistent profitability over the years. Intensifying pressure from investors and music executives left the company with little choice but to implement this price adjustment, which has been on the horizon for some time now.
While the official announcement is yet to be made, insiders have revealed that the revelation is expected to be made during the week of July 24. Moreover, this move may set the precedent for future price adjustments in other markets, as the company tries to regain financial stability.
Spotify faces tough competition in the music streaming industry, and rival platforms have also been adapting their pricing models. Last October, Apple Music raised its individual subscription fee to $10.99, signaling a trend in the industry. Amazon Music Unlimited, Amazon’s comprehensive music streaming service, offers a subscription for $8.99 to Prime members and $10.99 to non-Prime users.
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In a bold step to regain control over its revenue streams, Spotify announced earlier that it would cease accepting Premium subscriptions via the App Store. This move was likely an effort to bypass the commission fees charged by app platforms and ensure more direct revenue for the company.
Despite the financial challenges, Spotify retains its crown as the most widely-used streaming service in the U.S., boasting an impressive 44.4 million paid subscribers. Its closest competitor, Apple Music, lags behind with 32.6 million paid subscribers.