The Cost of Spotify Premium Just Went Up

Lately, it feels like we can't go more than a couple of weeks before another company announces a price increase. If you subscribe to streaming services, you've likely dealt with rising subscription prices in the last year or two. Music lovers who subscribe to Spotify Premium should prepare to pay more to use the app. The music streaming platform announced that Premium plans have increased. Here's how this news could impact your checking account.

All Spotify Premium plans have increased

With more than 550 million users, Spotify is a popular music streaming service. While the streaming platform has a free plan available to those on a limited budget, the capabilities are minimal compared to the features available to Premium subscribers.

Users who subscribe to one of Spotify's four Premium plans enjoy music without ads, offline download capabilities, and higher music quality. On July 24, the company announced that prices for all Premium plans now cost more. Plans now cost an additional $1 to $2 per month, depending on which specific plan you subscribe to.

While the price increases are relatively small, it's worth knowing if you're a current subscriber or have been considering subscribing. Every price increase adds up and impacts your personal finances. The new rates shown below apply to users in the United States.

Here's a breakdown of the previous prices and the new prices for each plan:

Wondering when the new rates will go into effect? Existing subscribers will receive an email explaining the rate increase and will be given a one-month grace period before the new price becomes effective.

Current users who want to avoid the price increase can cancel their subscription before the grace period ends. The new rates apply for new subscribers immediately, after a one-month free trial period. If you're currently on a free trial offer, you'll get your first paid month at the original price. After that, you'll be charged the new rate.

Do this to avoid a price increase

If you're disappointed by this news, you'll need to decide whether it makes sense to continue subscribing to Spotify Premium. Here are a few options to explore to save on this expense.

Downgrade your plan

If the new rate is too expensive for your budget. Premium Duo or Premium Family subscribers may want to consider switching to a Premium Individual plan to save a few bucks. If you have a Premium Individual plan, check to see if you're eligible for the low-cost Premium Student plan.

Upgrade your plan and split the cost

Individual users may want to upgrade to a Premium Duo or Premium Family plan and share the expense with other family or household members. A Premium Duo plan includes access for two users, and a Premium Family provides access for up to six users. A shared plan could be a financial win for everyone in your household.

Switch streaming platforms

Some subscribers may want to switch music streaming platforms to save money. While Apple Music subscription fees are comparable to the updated Spotify Premium plan fees, switching to a Pandora Plus or Pandora Premium plan could offer savings.

Switch to a free plan

Alternatively, Spotify Premium users can switch to Spotify's free plan. But by doing this, you'll lose out on ad-free content and other Premium features.

It's important to consider how increased monthly expenses impact your finances. If you need help managing your monthly expenses and could benefit from following a budget, check out our list of the best budgeting apps. Technology like this can help you stay organized and on track as you work to reach your financial goals.