Spotify announced Monday that it will increase the price of its premium service by $1, to $10.99.
The music streaming giant said existing premium plan subscribers would be notified by email about when the increase would take effect, and given a one-month grace period before it takes effect unless they cancel before the period ends.
It represents the first price increase for the company since 2011.
“The market landscape has continued to evolve since we launched,” Spotify said in a statement. “In order to continue to innovate, we are changing our Premium pricing in several markets* around the world.”
In addition to being ad-free, Spotify Premium offers users an unlimited number of individual songs to play at will.
Last month, Bloomberg News reported Spotify was planning a new super-premium tier that was expected to include high-fidelity audio.
Spotify’s announcement comes a few days later youtube announced it would be raising the price of its individual YouTube Premium plan by $2, to $13.99 per month, and its YouTube Premium Music service by $1, to $10.99 per month. Apple and Amazon have also raised the price of their music subscription services in the past year.
In April, Spotify reported that it was home to more than 500 million users. However, less than half of them were paid subscribers, with a technology news outlet pointing that Spotify’s ratio of paid to free subscribers has been “in free fall.”
Following the announcement on Monday morning, Spotify shares fell as much as 5%. The company is expected to report earnings on Tuesday.
