Spotify is increasing its subscription price in these regions

Spotify

has announced that it will be raising the monthly price of its premium individual subscription in several global markets. According to the company, subscribers can expect to receive an email over the next month detailing the price increase. The previous hike by Swedish audio streaming platform was announced in June last year with increase applies to all their premium tiers.

Markets where Spotify increasing its subscription price

Spotify announced that there will be price hike in multiple countries in South Asia, the Middle East, Africa, Europe, Latin America and the Asia-Pacific region. The company hasn’t specified the countries where there will be a price hike.

How much price will Spotify increase

The price will increase from 10.99 euros to 11.99 euros per month, a move the company says is part of its strategy to improve profit margins.The decision to raise prices comes after the Swedish streaming giant forecasted its quarterly profit would fall below analysts' estimates. The company cited higher tax expenses related to employee salaries as a key factor outweighing its strong music streaming demand.

According to news agency Reuters, following the announcement, Spotify's shares rose by approximately 3% in premarket trading, adding to a year-to-date gain of about 40%.

Spotify raised subscription prices in the US

Last year, Spotify raised its subscription prices in the US, with increases across all of its premium tiers. The most significant hike applies to its Family plan, a move that could make the service less competitive against rivals like Apple Music.

This latest change puts Spotify's Family plan at a disadvantage compared to Apple Music, whose Family plan remains at $16.99 for the same six-account limit.At that time, Spotify cited the need to “continue to invest in and innovate on our product offerings and features” as the reason for the price hike.