Spotify to raise monthly subscription price to $12.99 in US and other markets

Spotify will increase the price of ‍its monthly premium subscription plan by $1 to $12.99 in the ​United States, Estonia and Latvia markets, ‌the Swedish streaming platform said on 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 rose nearly 1% in premarket trading.

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 monetisation 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 U.S. and Canada, as it looks to attract more users and advertisers ⁠on the platform.