Spotify hikes premium subscription fee for millions of users

Spotify is increasing the price of its single-account premium plan for the first time since 2011, as well as raising the price of other services.

Subscriptions in the United Kingdom will be up by £1 per month to £10.99 for an individual plan, £14.99 for a premium pair plan, and £17.99 for a family plan, reports BBC.

The cost of a student plan stays the same at £5.99.

It follows other streaming providers that have raised subscription prices, it said.

Similar price increases are in effect in the United States, Canada, and 49 other countries.

The premium pair service will cost $14.99 instead of $12.99, the family plan will cost $16.99 instead of $15.99, and the student plan will cost $5.99 instead of $4.99.

Spotify said in its most recent financial report that it exceeded expectations by gaining 36 million monthly active users between April and June, bringing the total to 551 million. About 220 million of them pay for subscriptions, the report also said.

However, the company's pre-tax losses increased to €241 million (£207.3 million) for the three months, up from €90 million in the same time last year. Sales increased to €3.1 billion but fell short of estimates of €3.2 billion.

Spotify announced on Monday that it was boosting its fees "to help us continue to deliver value to fans and artists on our platform."

Users of Spotify will be given a one-month grace period before the new prices become effective unless they cancel before the grace period ends.

In January, the music industry giant let go of 6% of its workforce, citing the need to increase productivity.