Spotify increases its family premium service by $3/month amid cost of living crisis

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Music streaming platform Spotify is increasing its prices, hitting Aussies with yet another additional expense amid a cost of living crisis.

On Tuesday morning, the audio service announced to customers via email that the price of its Spotify Premium subscription, which allows users to listen to audio ad-free for a fee, is going up.

The cost of a family premium package, which includes access to up to six premium accounts for family members, will increase by $3 a month, or $36 a year.

Currently, the price of a family subscription sits at $20.99 per month but will jump to $23.99 a month.

The changes will hit from May.

“We’re increasing the price of Premium Family so that we can continue to invest in and innovate on our product offerings and features, and bring you the best experience,” the email explained.

The email ended with, “Thanks for being a fan of Premium.”

It’s the second hike in the space of less than a year for Spotify fans.

In July 2023, Spotify announced it was changing its individual streaming option from $11.99 per month to $12.99 per month, which came into effect in September. According to Spotify’s website, the individual subscription now costs $13.99 per month.

Bloomberg reported earlier this month that the changes were not just happening in Australia but also in the UK and Pakistan.

US, Spotify’s biggest market and customer base, is set to be hit with price hikes later this year, it was also reported.

Unsurprisingly, Bloomberg’s source attributed the change to an effort to boost revenue, especially with other streaming competitors increasing their own monthly subscription fees.

The audio company announced mass lay-offs at the end of the last year in a sign it was struggling in current market conditions.

It planned to cut approximately 1500 jobs — or about 17 per cent of its workforce.

The Sweden-based company had 236 million paying customers as at the end of last year.

Spotify previously said that for every dollar it generates, 70 per cent is paid back into the music industry.

This equated to around $US9 billion that Spotify paid to artists, record labels and others last year.

News.com.au has contacted Spotify for additional comment.

More expensive music is just more hit to be added to a growing list of things that have gone up in price.

Other streaming platforms have also hit customers with price increases, including Apple TV which slugged users with two price increases in 2023.

Last year, Netflix announced it was scrapping its cheapest plan that allowed customers to watch television ad-free, after subscriber figures fell for the first time since its Australian launch in 2015 amid a downturn in discretionary spending.

Research from NAB, released last year, found streaming services were among the first luxuries to go for Australians trying to cut back their spending amid the cost-of-living crisis.

Data revealed Australians are saving about $52 a month, or $624 a year, by auditing their monthly subscriptions and removing services they no longer find value in.

Up to 30 per cent of Australians have cut back on subscription services such as TV and music streaming platforms and other services like gym memberships, app subscriptions and regular food delivery services.

The price hike issue isn’t isolated to the entertainment sector.

Other costs for some basic joys such as food and beverages has also gone up, making this yet another blow for struggling Aussies.

The cost of a pint of beer is set to tip over $15 after a price rise of about 90 cents per pint hits drinkers on February 5.

Meanwhile, analysis has found that the price of McDonald’s fries has increased by more than 50 per cent since 2019, from $3.20 to $4.85, as of February, while a classic angus burger is up more than 25 per cent from $7.95 to $10.

– With NCA Newswire