Spotify Raises Price of Premium Subscription in US

Pricing Strategy - Spotify is increasing the price of its Premium subscription service by $1 a month in the United States, raising the monthly price from $11.99 to $12.99, effective in February [2][3] - This marks Spotify's third price increase in two-and-a-half years, with previous increases occurring in August 2023 and July 2024 [3] Subscription Benefits - The Premium subscription offers several benefits, including ad-free music and music videos, offline listening, the ability to play songs in any order, lossless audio, and a monthly allocation of audiobook listening hours [3] User Growth and Engagement - Spotify reported a year-over-year growth of 11% in monthly active users, reaching 713 million, and a 12% increase in subscribers, totaling 281 million [4] - The company emphasizes user engagement, stating that it has the tools necessary for revenue growth and profit expansion, with engagement at all-time highs [4] Product Innovation - Recent product releases include audio mixing for playlists, new personalization features for artist recommendations, and integration with ChatGPT for personalized song or podcast recommendations [4] Expansion into New Verticals - Spotify is expanding beyond music into audiobooks, podcasts, and merchandise, which complicates the payment process and introduces new expectations for flexibility [5]