CINCINNATI — Spotify subscribers will pay more starting next month as the streaming service announced another round of price increases across its subscription tiers.
The music streaming giant is raising prices by $1-2 per month, depending on the plan, marking another increase in a trend that has become prevalent across the streaming industry.
Here's what subscribers will pay starting next month:
- Premium plans: $13 per month (up from $12)
- Student plans: $7 per month (up from $6)
- Family plans: $19 per month (up from $17)
Why streaming services keep raising prices
Abdullah Al-Bahrani, economics professor at Northern Kentucky University's Haile College of Business, said the reason is straightforward.
"Simple answer is because they can," Al-Bahrani said.
He explained that Spotify has plateaued in subscriber growth and is shifting focus to increasing revenue from existing customers.
"So their next question is, how do we get more from our subscribers?" Al-Bahrani said.
Watch: How to save money on streaming services
Spotify joins a growing list of streaming services that have raised prices in the past year, including:
- YouTube TV
- Apple TV+
- Disney+
- Hulu
- HBO Max
- Peacock
- Paramount+
- Netflix
The constant price increases are forcing customers to become more selective about which services they keep.
"Well, I stopped Netflix. It was just getting too expensive," Ruthann Sammarco told us.
Al-Bahrani said Spotify expects to lose some customers but anticipates that additional revenue from loyal users will offset those losses.
"They know they'll lose some people, but ultimately they're going to make money off the people that are retained," Al-Bahrani said.
To justify rising costs, Spotify continues adding features like podcasts and audiobooks to its platform.
How to save money on streaming subscriptions
If streaming costs are adding up, here are ways to reduce your monthly bills:
1. Track your subscriptions
"It's really important for you to take track of what you're actually subscribing to and how often you use it. From a budgeting standpoint, cut what you don't use," Al-Bahrani said.
2. Consider cheaper alternatives
- Switch to ad-supported plans
- Look for student or family discounts
- Share accounts legally with family through multi-user options
3. Look for bundled deals
- Check for promotions through your credit cards
- Review internet plan bundles that include streaming services
- Explore carrier perks from your phone provider
4. Check your phone plan for hidden savings
Some carriers, like Verizon and AT&T, bundle Spotify Premium for free or at a discount. You could already have access without realizing it.
Always review your carrier perks to avoid paying twice for the same service.
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