Audio streaming giant Spotify (SPOT) has raised the prices charged for its premium plans in the U.S. as it tries to expand its margins.
The Swedish company known for its music and podcast streaming app has raised prices for its monthly individual premium plan to $11.99 U.S. from $10.99 U.S.
Spotify has also increased the price of its premium duo plan to $16.99 U.S. from $14.99 U.S. and hiked its family plan to $19.99 U.S. from $16.99 U.S. previously.
The price increases are the latest attempt by Spotify to improve its profit margins.
The company has already sought to boost its margins by lowering its marketing spending and cutting staff. It had previously issued promotions to drive user growth and monthly subscriptions.
The company offers an advertising-supported free streaming plan and a subscription service that is free of ads. Subscriptions to Spotify’s premium service account for most of its revenue.
The company is also adding a growing number of audiobooks to its streaming platform in addition to music and podcasts.
Spotify’s quarterly profit topped $1 billion U.S. for the first time this April after the company curtailed its global marketing spending.
Premium subscriptions on Spotify rose 14% to 239 million in the year’s first quarter.
The stock of Spotify has increased 90% in the last 12 months to trade at $296.78 U.S. per share.
