Spotify raises prices for its premium plans across several countries

Spotify Technology has raised prices for its premium plans across several countries including the United States and United Kingdom, as the music-streaming company looks to boost profitability in an uncertain economy.

The move will result in a $1 price increase for Spotify’s U.S. plans, with the premium single now starting at $10.99, duo at $14.99, family at $16.99 and the student plan at $5.99.

Spotify has moved in recent months to boost margins with hundreds of layoffs and a restructuring of the podcast unit, which it had built up with billions of dollars in investment.

The price increases come at a time when streaming services, both audio and video, are under rising investor pressure to boost profitability after years of prioritizing user growth.Rivals services from Apple and Amazon.com and Tidal have all increased prices this year, while YouTube also hiked prices last week on its monthly and annual premium plans in the U.S. for the first time since the subscription service was launched in 2018.

The company reported second-quarter results that comfortably beat expectations for both monthly active users and subscribers, and forecast the number of listeners each month would reach 572 million next quarter.

After laying out plans last year to get 1 billion users by 2030 and to reach $100 billion revenue annually, Spotify has been growing at a rapid clip, but its costly expansion into podcasts and audiobooks have hit margins.The number of monthly active users rose to 551 million in the quarter, beating Spotify’s guidance and analysts’ forecasts of 526.8 million.Premium subscribers, who account for most of the company’s revenue, rose 17% to 220 million, topping estimates of 216.6 million, according to IBES data from Refinitiv.The growth was driven by marketing campaigns and as more listeners signed up in countries across Europe, Latin America and Asia.However, its quarterly revenue was 3.18 billion euros ($3.51 billion), below analyst estimates of 3.21 billion euros.Spotify on Monday raised prices for its premium plans across several countries but expects those increases to have a minimal impact on revenue in the quarter.