Music streaming service Spotify Technology (SPOT) is raising prices in Canada.
The Swedish company known for its music and podcasts says it is increasing the cost of its advertisement free monthly subscription packages. Going forward, individual accounts in Canada will see a $1.70 per month increase to $12.69 before taxes. Spotify’s family accounts that allow up to six users on a single plan will see their monthly fee rise by $4 to $20.99.
Student packages are increasing by $0.40 per month to $6.39 and duo packages are rising $2.90 to $17.89 a month. The fee hike in Canada comes after Spotify raised prices by similar amounts in the U.S. this summer. Canadian subscribers last saw their monthly fees go up a little over a year ago.
The price hikes come as Spotify seeks to streamline its operations and boost its financial performance and share price. Since the start of this year, the company has slashed internal costs, undertaken layoffs, and reduced its marketing budget.
At the same time, the company has grown its user base through promotions and new podcasts. Spotify currently has more than 600 million monthly active users, and analysts say that number is likely to grow now that rival TikTok has announced plans to cease its music offering. As the number of users at Spotify has grown, the company has begun to increase prices.
Spotify stock has effectively doubled this year and is up nearly 140% over the past 12 months.
Spotify Technology stock has a consensus Moderate Buy rating among 30 Wall Street analysts. That rating is based on 23 Buy, six Hold and one Sell recommendations made in the last three months. The average SPOT price target of $397.88 implies 6.37% upside from current levels.
