Spotify announced on Monday that it’s increasing the monthly price of its Premium individual subscription in various markets starting in September, as the company seeks to boost its profit margins.
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The subscription price will rise from €10.99 to €11.99 per month in regions including Europe, Latin America, South Asia, the Middle East, Africa, and the Asia-Pacific.
While a local spokeswoman for Spotify couldn’t be reached for immediate comment on the impact in South Africa, the company’s website shows the changes are already in effect. A Premium individual subscription in South Africa now costs R69.99 per month, an increase from the previous R64.99 price point set in October 2023.
The new R69.99 monthly fee puts Spotify’s Premium plan on par with competitors in South Africa, such as Apple Music (R69.99) and YouTube Music (R64.99).
Other local subscription tiers are also seeing price hikes:
- The Premium Family plan is increasing from R99.99 to R119.99 per month.
- The discounted Premium Student plan is rising from R34.99 to R37.99 per month.
Spotify stated that subscribers will receive an email over the next month explaining the new pricing. Following the announcement, Spotify’s shares saw a jump of about 5% in pre-market trading, adding to a year-to-date increase of roughly 40%. The company’s move to raise prices comes after it recently forecasted a quarterly profit below analyst estimates, citing higher taxes on employee salaries.
