Spotify (NYSE:SPOT) has announced that it will raise the prices of its premium service in the U.S. from July this year. The audio streaming service will raise the price of its individual plan to $11.99 per month from $10.99 per month earlier, indicating a rise of around 10%.
In addition, the company has raised the plans of its Duo and Family plans to $16.99 and $19.99 per month, representing a rise of $2 and $3 respectively, while the student plan will continue to be priced at $5.99 per month.
Details About Spotify’s Price Hikes
Spotify stated that it intends to “invest in and innovate” its product features alongside the price hike across its plans. This marks the company’s second price hike in less than a year. Moreover, the company reported robust Q1 results results with a 20% rise in revenues to €3.64 billion.
Spotify announced that premium subscribers will receive emails about a price increase next month, but it is unclear whether the price hike will apply to existing premium subscribers or whether it is likely to affect only new subscribers.
However, according to a TechCrunch report, Spotify confirmed that the new pricing will apply to new subscribers immediately and to existing subscribers from their July billing date.
Is SPOT a Good Stock to Buy?
Analysts remain cautiously optimistic about SPOT stock, with a Moderate Buy consensus rating based on 19 Buys and seven Holds. Over the past year, SPOT has surged by more than 85%, and the average SPOT price target of $349.26 implies an upside potential of 17.7% from current levels.
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