Spotify has officially revised its Premium subscription prices in India, marking the first increase since its launch in the country in 2019. The new pricing came into effect this week as part of a global pricing update by the streaming giant. With a nearly 28% hike in the Family Plan and increases across all other plans, the change underscores Spotify’s strategic push to strengthen its revenue streams amid rising operational costs and intensified market competition.

Key Highlights

First price revision in India since Spotify’s launch in 2019

Family plan sees the highest increase at 28%

Global pricing changes also rolled out in Europe, Asia-Pacific, Africa, and Latin America

Spotify continues investment in new features and user experience

Free-tier users face more restrictions to drive Premium adoption

New Spotify Premium Prices in India

Spotify’s updated Premium subscription rates are as follows:

Individual Plan: ₹139/month (up from ₹119)

Duo Plan: ₹179/month (up from ₹149)

Family Plan: ₹229/month (up from ₹179)

Student Plan: ₹69/month (up from ₹59)

Subscribers will be notified of these new rates via email in the coming weeks.

Why the Price Hike?

Spotify attributes the price hike to a combination of increasing operational costs and ongoing investments in product development and new features. This update aligns with the company’s global strategy to improve profitability and sustain innovation in the face of market challenges.

Strategic Shift in India

India is seen as a critical growth market for Spotify. CEO Daniel Ek has emphasized the region’s potential to significantly boost the company’s long-term revenue. In late 2023, Spotify began limiting several free-tier features in India, such as repeat playback and access to in-app lyrics, signaling a stronger push toward Premium conversions.

The Indian music streaming landscape has recently seen major shifts. Platforms like Wynk, Resso, and Gaana have either exited the space or scaled down their operations, narrowing competition and presenting Spotify with a more favorable opportunity to capture market share. However, the service still faces strong competition from YouTube Music, Apple Music, Amazon Music, JioSaavn, and Hungama.

Global Context and Financials

This price adjustment follows Spotify’s latest earnings report, which revealed a 10% year-over-year growth in revenue. Despite the rise, the company recorded an operating loss of €86 million, largely due to increasing employee-related costs and share-price-linked expenses.

What’s Missing?

Despite repeated announcements, Spotify is yet to launch its highly anticipated Hi-Fi streaming tier, a feature promised over two years ago. Many users are still awaiting this upgrade, especially given the rising costs.

Conclusion

While the price hike may not sit well with some users, Spotify’s revised pricing strategy is part of a broader effort to maintain service quality, fund innovation, and drive more users toward paid subscriptions. As competition shrinks and the focus on emerging markets like India intensifies, Spotify appears committed to long-term growth, even if it comes at a steeper price for users.