Spotify joins trend of rising music streaming costs, increases US subscription fee

Spotify plans to raise its monthly subscription fee in the US by $1, changing the standard rate from $9.99 to $10.99. This price increase, first reported by The Wall Street Journal, will only apply to Spotify's ad-free premium service.

The music streaming industry seems to be trending towards higher subscription prices, with Spotify's announcement following similar decisions by YouTube Premium and YouTube Music. Almost a year ago, Apple Music also increased its subscription fee from $9.99 to $10.99, attributing the change to rising licensing costs and promising it would boost earnings for artists and songwriters.

Spotify has also altered its payment system recently, transitioning legacy subscribers away from App Store payments. This change compels subscribers to pay Spotify directly, avoiding Apple's commission and ensuring a full revenue stream for the company. The report suggests that other global markets will also see price increases in the near future due to escalating licensing costs and other expenses.