Spotify Australia announces price hike for premium subscription

The popular streaming service has announced the change amid a major cost-of-living crisis across Australia.

The price of Spotify’s premium streaming option has increased. Picture: Lionel Bonaventure / AFP

A popular streaming service has announced a price hike to “innovate product offerings” amid a crippling cost-of-living crisis.

Spotify premium revealed it would be changing its individual streaming option from $11.99 per month to $12.99 per month.

“We’re increasing the price of premium individual so that we can continue to invest in and innovate on our product offerings and features, and bring you the best experience,” Spotify said in an email to customers on Tuesday.

The new price will come into effect for existing subscribers in September.

Spotify premium revealed it would be changing its individual streaming option from $11.99 per month to $12.99 per month. Picture: AFP/ Martin Bureau

The news comes despite Spotify striking a deal with Ticketek, allowing customers to get direct access to the latest live music events through the app.

Spotify is not the first streaming service to make changes to its subscription services, with Netflix Australia making a major overhaul earlier this year.

Netflix announced in May it would be cracking down on subscription sharing with new technology to stop people across multiple households using the same password.

A new payment allows users to add an “extra member” to standard or premium plans for an additional $7.99 a month.

Up to two users, depending on the plan, will be able to get cheaper access to their own Netflix account on one device in another location.

The new price will come into effect for existing subscribers in September. Picture: AFP: Lionel Bonaventure

Millions of Aussies are struggling with cost of living pressures, surging rents, housing prices and historically high inflation.

New research from NAB, released last week, found streaming services were the first to go for Australians trying to cut back amid the crisis.

Data revealed Australians are saving about $52 a month, or $624 a year, by auditing their monthly subscriptions and removing services they no longer find value in.

Up to 30 per cent of Australians have cut back on subscription services such as TV and music streaming platforms and other services like gym memberships, app subscriptions and regular food delivery services.

The data found people aged 18 to 29 year old were most likely to cull their subscriptions, with 41 per cent of people from the age group surveyed stating they had cut their recurring payments.