Shares of Spotify ( SPOT ) Technology SA are trading higher after the company increased prices for its premium plans in the U.S.

Over the next month, subscribers in the U.S. will receive an email explaining what the update means for their subscription.

On a monthly basis, Spotify ( SPOT ) has adjusted the cost of its individual plan to $11.99 from $10.99, the duo plan to $16.99 from $14.99, and the family plan to $19.99 from $16.99 in the U.S.

The decision marks the latest move by the Swedish music-streaming giant to enhance its profit margins, according to a report from Reuters.

The company’s recent efforts to boost its margins include reducing marketing expenses and implementing layoffs.

The company, which faces competition from Apple Inc. ( AAPL ) and Amazon.com Inc. ( AMZN ) , has announced the price hike, emphasizing the need to continue investing in and innovating its product offerings.

Also Read: Spotify Discontinues Car Thing Device, Shifts Focus to New User Features

Spotify ( SPOT ) offers a free, ad-supported service with limited features and a subscription-based service providing full functionality.

The report further cited analysts who predicted further growth for the streaming service through tailored subscription plans based on user preferences for music, audiobooks, and podcasts.

In April, Spotify ( SPOT ) reported a quarterly gross margin improvement of 243 bps to 27.6%, reflecting improved podcast and music profitability.

Premium subscribers increased by 14% to 239 million, with the company forecasting 631 million monthly active users for the second quarter.

Related: Music Giant Spotify’s Q1 Surprise: Investors Cheer Premium Subscriber Growth And Profit Bump

Spotify ( SPOT ) stock gained over 99% in the last 12 months. Investors can gain exposure to the stock via ProShares On-Demand ETF ( OND ) and WBI BullBear Quality 3000 ETF ( WBIL ) .

Price Action: SPOT shares are trading higher by 4.83% at $311.12 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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