Spotify raises prices of premium subscription plans

Spotify announced on Monday it is increasing the cost of its premium subscription plans in the U.S., marking theSwedish music-streaming company's second price hike in a year.

U.S. Spotify users will be notified about the new change to their subscription over the next month.

Shares of Spotify were up more than 4% Monday morning.

For users in the U.S., an "Individual" plan will cost $11.99. A "Duo" plan will cost $16.99, and a "Family" plan will cost $19.99. The "Student" plan will still cost $5.99.

Spotify said it is raising prices so the company can "continue to invest in and innovate on our product features," according to a blog post.

In July 2023, Spotify increased the price of its Individual offering to $10.99. It also increased the prices of its Duo plan, Family plan and Student offering to $14.99, $16.99 and $5.99, respectively. The company said the market landscape has "continued to evolve" since Spotify launched, according to a release at the time.

Spotify competitor Apple Music increased the cost of its subscription in late 2022. An individual subscription starts at $10.99 a month, according to Apple's website.