Spotify will increase the price of its monthly premium subscription plan by $1 to $12.99 in the US, Estonia and Latvia markets, the Swedish streaming platform said Thursday.
The company said its new pricing would take effect on consumers’ billing dates starting in February. Subscribers will receive an email about the price adjustment. Its shares fell nearly 3%.
Spotify has relied on price increases in recent years to drive growth. Last year, its finance chief Christian Luiga said despite raising prices in more than 150 countries, the company has not observed any significant rise in customer churn, underscoring its emphasis on retaining existing users rather than aggressively pursuing new ones.
The company said on Thursday the price change is a part of its ongoing efforts to “keep delivering a great experience,” signaling that the increased revenue will be reinvested into improving the platform and supporting creators.
Its premium subscribers rose 12% to 281 million in the third quarter. The company had 713 million monthly active users at the end of the period.
Spotify has said its investment priorities center on top-line growth, driving user acquisition in emerging markets and expanding content to include more podcasts, videos and audiobooks.
Earlier this month, the company expanded its monetization program for creators and introduced new tools for video podcasters in a crowded segment where YouTube and Netflix are vying for a market share.
Spotify also made its music videos available to premium subscribers in the US and Canada, as it looks to attract more users and advertisers on the platform.
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