Spotify to raise monthly subscription price to $12.99 in US and other markets

(Reuters) - Spotify will increase the price of its monthly premium subscription plan by $1 to $12.99 in the United States, Estonia and Latvia markets, the Swedish streaming platform said on Thursday.

The company said its new pricing would take effect on consumers' billing dates starting in February. Subscribers will receive an email about the price adjustment. Its shares rose nearly 1% in premarket trading.

Spotify has relied on price increases in recent years to drive growth. Last year, its finance chief Christian Luiga said despite raising prices in more than 150 countries, the company has not observed any significant rise in customer churn, underscoring its emphasis on retaining existing users rather than aggressively pursuing new ones.

The company said on Thursday the price change is a part of its ongoing efforts to "keep delivering a great experience," signaling that the increased revenue will be reinvested into improving the platform and supporting creators.

Its premium subscribers rose 12% to 281 million in the third quarter. The company had 713 million monthly active users at the end of the period.

Earlier this month, the company expanded its monetization program for creators and introduced new tools for video podcasters in a crowded segment where YouTube and Netflix are vying for a market share.

Spotify also made its music videos available to premium subscribers in the U.S. and Canada, as it looks to attract more users and advertisers on the platform.