Australian Spotify users are about to see their monthly subscription prices go up, so the platform can “invest and innovate”.

Spotify’s 200 million Premium subscribers around the world would most likely to have learned of the price change in an email on Tuesday (AEST).

It’s the first time in a decade that the streaming giant has hiked its rates, and it’s not immediate. Changes will take effect in September, and effect users all over the world.

In its email explaining the change, Spotify said the extra cash would allow it to “continue to invest in and innovate on our product offerings and features, and bring you the best experience”.

“The market landscape has continued to evolve since we launched,” Spotify said in a media release on Tuesday.

“So that we can keep innovating, we are changing our Premium prices across a number of markets around the world. These updates will help us continue to deliver value to fans and artists on our platform.”

Spotify is the latest in a string of streamers to lift their prices. Apple Music, Peacock, Netflix, Max, and Paramount+ have all recently raised monthly subscriptions.

Spotify’s move was flagged in April, when Swedish CEO Daniel Ek said the company would “like to raise prices in 2023”.

“When the timing is right, we will raise it and that price increase will go down well because we’re delivering a lot of value for our customers,” Mr Ek said.

It follows major sackings earlier this year at the music streamer as it cuts costs amid the tech bloodbath.

The BBC reports that Spotify has 515 million active users in more than 180 markets, about 40 per cent of whom are subscribers.

How much will it be to use Spotify Premium?

After the price hikes, Spotify’s individual premium tier will cost Australians $12.99 a month.

It allows for one account, allowing listening offline and minus ads, as well as on-demand playback. It is the most affordable option and has been $11.99 a month.

For other premium options, which include Duo (all the benefits of individual premium with two accounts), the price will rise $2 a month, from $15.99 to $17.99.

Premium Family, which allows six accounts to use Spotify, goes from $18.99 to $20.99.

The special discount price for university students is also changing. From September, students will cop a $1 bump in their subscription, meaning they will have to pay $6.99 a month to keep listening.

As well as Australia, Spotify is raising prices in these markets:

• Andorra, Albania, Argentina, Austria, Bosnia and Herzegovina, Belgium, Britain, Bulgaria, Brazil, Canada, Chile, Colombia, Costa Rica, Cyprus, Denmark, Ecuador, Estonia, Spain, Finland, France, Greece, Guatemala, Hong Kong, Croatia, Indonesia, Ireland, Israel, Iceland, Italy, Kosovo, Lithuania, Luxembourg, Latvia, Monaco, Montenegro, North Macedonia, Malta, Mexico, Netherlands, Norway, New Zealand, Peru, Portugal, Serbia, Sweden, Singapore, Slovenia, Slovakia, San Marino, Thailand, Turkey and the US and Kosovo

How will the Spotify price change work?

The price change will not take effect until September. Users are billed on whatever day of the month they initially subscribed to Spotify.

Spotify is essentially giving users a one-month grace period, so they have the chance to cancel their subscription or change it before the new prices kick in.

Spotify also offers an ad-supported service, which is free. It allows access to music, podcasts, saved tracks, playlists and podcasts.

With all the premium options, Spotify gives one month for free. Anyone who starts a free trial before September can have the premium option of their choice at the original price for a month, before the new rate is charged.