Spotify will set the first price hike for its individual premium subscription since its U.S. launch 12 years ago, The Wall Street Journal reports, citing anonymous sources. The $1 increase, which is expected to be this week, would boost the monthly cost from $9.99 to $10.99. The decision comes as the music streamer looks to boost profitability. Up until now, Spotify had only raised family plan prices as other competitors, such as Apple, Amazon, Tidal and YouTube, increased subscription costs within the last year. Price increases may also roll out in other countries over the next few months.

By Rob Sacks, Editor at LinkedIn News

SPOTIFY TO FINALLY RAISE FLAGSHIP PREMIUM PRICE IN THE US NEXT WEEK, REPORTS WALL STREET JOURNAL

The past few days have brought – from the perspective of music rightsholders, at least –  the welcome news that the flagship price for YouTube Music (and YouTube Premium) is being increased in the United States.

That news follows similar price rises in the United States over the past year from Apple Music ($9.99 per month to $10.99 per month for its flagship individual subscription) and Amazon Music.

We’ve not yet, however, heard a peep from Spotify about an increase in the monthly price-tag for its individual Premium subscription tier in the US.

That looks like it’s about to change.

The Wall Street Journal reports today (July 21) that Spotify is set to announce price raises next week, with its flagship individual subscription product increasing in the United States from USD $9.99 per month to $10.99 per month – the same rise that Apple Music enacted for its service in October last year.

The WSJ additionally reports that similar Spotify price increases are expected to hit “dozens of markets” around the globe in the months ahead.

Figures recently revealed by the National Music Publishers’ Association (NMPA) suggested that Spotify counted 44.4 million paying subscribers in the United States as of the end of February.

At the same juncture, suggested the NMPA figures, Apple Music had 32.6 million US-based subscribers, with Amazon Music on 29.3 million.

In addition to these subscriber stats, at the NMPA’s annual meeting – which took place on June 14 – the trade body’s CEO and President, David Israelite, revealed what he called a “very significant announcement” about two of these services.

According to Israelite: “When Amazon and Apple raised their subscription prices, not only did they not lose subscribers – they experienced subscriber growth.”

In Q4 last year, Apple Music announced that it was upping its standard monthly subscription price from USD $9.99 to $10.99 in the US, and GBP £9.99 to £10.99 in the UK. It also increased the price of its Family Plan in both territories.

In January, Amazon Music confirmed to customers that, like Apple, it would be raising its standard individual Amazon Music Unlimited monthly subscription price from $9.99 to $10.99 in the US, and from £9.99 to £10.99 in the UK.Music Business Worldwide.