Spotify is raising the price of its basic monthly subscription for the first time in its 15-year history as it comes under pressure to increase payments to the music industry.
The streaming service will charge users £10.99 a month for its premium service, up from the £9.99 it has been at launch.
The Swedish company said it will also raise the price of the family plan by £1 a month to £17.99.
It comes amid mounting pressure from record labels and artists over payouts to the industry and growing concerns that AI-generated music poses a threat to musicians.
Spotify, which has more than 200 million paying subscribers, said the price increase was made to “meet market demands”.
Record company bosses are pushing for more money from streaming services, both through price hikes and changes to payment arrangements.
Eric Levin, chief financial officer of Warner Music, one of the “big three” record companies, said in May: “We’re doing what we can to try to encourage not just a price increase, but a recurring set of price increases.”
Spotify’s rivals Apple Music, YouTube Music and Amazon Music Unlimited have raised prices over the past year.
Revenues in the global industry have doubled since 2013, but have faced headwinds in the past year. U.S. music industry revenue, adjusted for inflation, fell last year for the first time since 2015.