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Spotify raising premium plan prices in US to try to stay profitable

Credit: Spotify

After years of on-again off-again profits and losses, Spotify is raising its subscription price for U.S. subscribers by $1 in hopes of staying in the black.

While the change hasn't been announced yet, the cost of Spotify's ad-free premium plan will jump to $10.99 monthly, up from $9.99 monthly for U.S. subscribers. This marks the company's first price hike since its introduction.

However, the company's inability to remain profitable and increased pressure from investors and music executives has made the price hike all but inevitable.

According to The Wall Street Journal, the price hike is expected to be announced the week of July 24. The company will likely raise prices in other markets in the coming months.

Apple Music raised the cost of an individual subscription from $9.99 to $10.99 in October. Amazon Music Unlimited, Amazon's all-you-can-play music streaming service, is $8.99 for Prime subscribers or $10.99 for non-Prime subscribers.

In July, Spotify announced that it would cut off any remaining customers paying for their Spotify Premium subscriptions via the App Store.

Spotify remains the most used streaming service in the U.S., with 44.4 million paid subscribers. Apple Music holds the second-place position with 32.6 million paid subscribers.