Spotify has Announced that it is increasing the prices of its Premium plans, which confirms reports that began to emerge for the first time weekend.

The music streaming giant, which claims some 500 million users worldwide, 40% of whom are premium subscribers, revealed that its main ad-free premium subscription plan will increase from $9.99 per month to $10.99 in the US, while its Duo plan will increase by $2 to $14.99. Meanwhile, the family plan increases by $1 to $16.99 and the student plan also increases in dollars to $5.99 each month.

The subscription increase is not limited to the US market, as Spotify Confirms that it will increase its prices in dozens of markets, including the European Union (EU), the United Kingdom, and parts of South and Central America, Asia, and Oceania.

The company has yet to confirm pricing for these markets, and says those affected will start receiving emails from today confirming their new rates. However, EU customers are likely to see their main premium plan prices increase by a single euro to €11.99 per month, while UK listeners will likely see their premium subscriptions increase by £1 to £10.99 per month.

Profits

The price increase is notable, as this is the first time Spotify has changed its basic premium pricing plan in many of its core markets, including the US and much of Europe, while streaming counterparts like Netflix have regularly update their price levels through the years.

It’s also worth noting that today’s announcement comes a day before Spotify reports its Q2 2023 earnings, with a price increase an obvious conduit for the Swedish company to increase revenue as it drives toward sustained profitability and ultimately keep its shareholders happy.

Apple also increased its premium subscription from $9.99 to $10.99 last October, so today’s news essentially aligns Spotify with its main music streaming rival.

Reports appeared earlier this year that Spotify is working on a new subscription plan that will give users access to higher quality “lossless” music, and will reportedly launch in the US later this year with a tentative price of $19.99 per month.