Spotify increases prices of its premium plans for its customers in the United States in order to increase its margins

Spotify on Monday raised the prices of its premium plans in the United States, the latest move by the Swedish music streaming service in its bid to increase margins.

On a monthly basis, Spotify increased the prices of its individual plan from $10.99 to $11.99, its duo plan from $14.99 to $16.99, and its family plan from $16.99 to $16.99. $19.99 in the United States.

Spotify has tried to boost its margins in recent months by cutting marketing spending and making layoffs, after relying on promotions and heavy investments to drive user growth.

Shares of the company, which competes with Apple and, rose about 4% in premarket trading.
“We are increasing the price of Premium Individual so that we can continue to invest and innovate in our product offerings and features,” Spotify said in an email it plans to send to its subscribers in the United States over the next month.

The company offers a free, ad-supported service with limited features and a paid subscription service that provides access to all of its features, with premium subscribers accounting for the bulk of its revenue.

Analysts expect that the streaming giant can continue its growth by offering tailored subscription plans based on consumer preferences in verticals such as music, audiobooks and podcasts.

The company’s quarterly gross profit topped $1.08 billion for the first time in April after it cut marketing spending.

Its premium subscribers grew 14% to 239 million and it projects 631 million monthly active users for the second quarter.

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