KEY POINTS
- Spotify has announced it will increase its subscription prices.
- It is the latest streaming service to do so.
- The changes will come into effect for existing users from September.
Spotify users will soon be hit with higher subscription costs after the music streaming app announced price rises.
It is the latest streaming service to increase prices for subscribers.
How much is Spotify raising its subscription prices by?
Spotify announced on Tuesday that it would increase prices on its ad-free, premium plans in a move that will affect not just Australians but 53 different markets across the world, including the United Kingdom and the United States.
In Australia, Spotify's Premium Individual plan will increase from $11.99 to $12.99 a month, while Premium Duo will rise from $15.99 to $17.99.
Its Family plan — which allows up to six accounts — will now cost $20.99 a month (up from $18.99), and the Student plan will be hiked by $1 to $6.99.
The new prices for existing subscribers will come into effect from September.
Spotify, which has over 100 million songs, said the price hikes would allow it to "keep innovating".
"These updates will help us continue to deliver value to fans and artists on our platform," a post on the Spotify website read.
What are the alternatives to Spotify?
There are a number of alternative music streaming services, although they are at similar price points.
Apple Music, which has over 100 million songs, raised its prices in October last year.
The Apple Music Voice plan, on which subscribers can only play music via Apple's virtual assistant Siri, costs $5.99 a month, while the Student plan sets users back $6.99.
Its plan for an individual subscriber is $12.99 a month, while Apple Music Family costs $19.99 — $1 less a month than the Spotify equivalent.
There are a number of alternative music streaming services to Spotify, although they are at similar price points. Source: AAP, Press Association / Jaap Arriens
And YouTube Music Premium, also hosting 100 million tracks, costs $11.99 a month.
How much can cutting back on subscriptions save you?
Spotify's price hike comes as Australians battle a , with everything to rising.
Data from National Australia Bank's (NAB) latest consumer sentiment survey of 2,000 Australians, released last week, found about 30 per cent of respondents had cut back on subscription services, saving them about $52 a month or $624 a year.
It said the $52-a-month saving was the equivalent of unsubscribing from the basic plan of five streaming services.
"Many of these services let you turn them on and off easily so, just like you might put a gym membership on hold if you're overseas, if you're away from home or trying to save money, you can pause or stop them," NAB's personal banking executive, Kylie Young, said in a statement.
"Regularly checking what you're signed up to can also help you work out if you're getting the best value, whether there is a cheaper plan available or an option to split the cost with a partner or housemate."
