Spotify is a popular entertainment app that allows users to stream music, audiobooks, and podcasts. The company offers a free ad-supported plan and several paid premium plans with ad-free music streaming.
Existing customers should be aware that subscription costs have recently become more expensive. New subscribers will pay more, effective immediately, while current subscribers will pay more at their upcoming renewal.
Spotify hikes prices for the second time in a year
In July 2023, Spotify announced it would increase subscription prices for its service. Unfortunately, subscription fees are about to rise again less than a year later.
On June 3, 2024, Spotify stated in a blog post that price adjustments would be made so the company could continue to innovate its product features. All Spotify Premium plan prices (excluding Student) cost more.
As of June 3, 2024, new subscribers will pay the following monthly rates:
- Individual: $11.99
- Duo: $16.99
- Family: $19.99
- Student: $5.99
Existing subscribers will receive an email explaining the price hike update throughout the next month. The company shared a screenshot of an example email alerting a current customer that their subscription will renew at the updated rate in July.
I received an email this morning stating that I would be billed a higher amount starting in July. With tax added, I’ve been paying $18.18 monthly for Spotify Family, but soon, I’ll pay $21.39. That’s an increase of $38.52 annually.
Sadly, Spotify doesn’t offer annual subscriptions. I’d love to see that option in the future. Some brands provide discounted subscription rates to customers who enroll in yearly billing. Discounted yearly plans could help loyal subscribers keep more money in their checking accounts.
Premium plans are going up $1 to $3 per month
Subscriptions now cost an additional $1 to $3 per month, depending on your Spotify Premium plan.
Spotify Family subscribers will feel the most impact, but on the bright side, this plan allows up to six users to share a subscription. So this plan still provides significant value if you have multiple family members or roommates sharing the perks.
Here’s an overview of the price changes:
Luckily, Student subscribers will continue paying the same price.
This hack will save you over $40 per year on Spotify Premium
As mentioned above, Spotify doesn’t offer an annual subscription rate for its plans. However, you can buy a 12-month Spotify gift card to avoid paying the increased rate. This gift card can be redeemed as payment for a 12-month Spotify Individual subscription.
These gift cards are sold at retailers like Amazon and Best Buy for $99. The packaging will specify that the gift card is good for a 12-month Spotify Individual subscription. You can then redeem the gift card through your online Spotify account.
This strategy allows you to renew your yearly subscription for a discounted price. Instead of $143.88 a year ($11.99 per month x 12), you’ll pay only $99 for a savings of $44.88. Keep in mind that this strategy won’t work for other premium plans, only Spotify Individual.
If you can’t get around the price hikes, consider paying for your monthly subscription using a credit card that earns rewards. Earning rewards can help you offset rising costs that come with inflation. Check out our list of the best cash back credit cards to learn how to earn cash back on your spending.
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