Spotify will soon raise its subscription costs in Canada.
Over the past few days, Canadian subscribers have taken to social media to share emails informing them of the price change, and MobileSyrup‘s Jon Lamont just got one as well.
Starting on their billing date in December, Spotify customers will have to pay:
- Student — $6.39/month (up from $5.99/month)
- Premium — $12.69/month (up from $10.99/month)
- Duo — $17.89 (up from $14.99)
- Premium Family — $20.99/month (up from $16.99/month)
The new prices are now listed on Spotify’s website as well.
Spotify last increased its prices in Canada in July 2023. In the email sent to customers, Spotify says it’s now hiking prices “so we can continue to innovate on our product offerings and features.” However, that only tells part of the story.
Last week, the company also indicated to Billboard Canada that the price hike has come in response to the Canadian Radio-television and Telecommunications Commission (CRTC)’s Online Streaming Act. Under that new law, foreign streaming companies like Spotify, Apple TV+ and Netflix must pay a five percent levy on all of their Canadian revenue to go toward local news production and content.
“We may also adjust our prices to reflect local macroeconomic factors and meet market demands while offering an unparalleled service. We, along with a number of others, have filed a legal challenge against the CRTC streaming tax in Canada, and so will not be commenting further publicly at this time,” Spotify told the publication.
The Digital Media Association (DiMA), the organization that represents streamers like Spotify, Apple, YouTube and Amazon in Canada, recently launched a campaign to get Canadians to contact their local MPs to “Scrap the Streaming Tax,” warning it will lead to price increases such as this one. The Motion Picture Association-Canada (MPA-Canada), which represents the likes of Netflix, Disney+ and Paramount+, has also filed two legal challenges to oppose the CRTC’s ruling.
The CRTC, for its part, has argued that the Online Streaming Act will bring $200 million into Canada’s broadcasting system annually. The government claims this requirement will help level the playing field between foreign streamers owned by tech giants and traditional broadcasters who are already contributing to Canadian content.
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