Music streaming giant Spotify has notified its Canadian customers that subscription prices will be increasing across all premium plan tiers. This move comes as the debate around a proposed new tax on foreign digital services continues in the country.
In June, the Canadian Radio-television and Telecommunications Commission (CRTC) announced a 5% tax on the Canadian revenues of large non-Canadian streaming services, totalling over $25 million annually. The funds generated will support domestic artists and broadcasters through various programs.
Spotify confirmed the price hikes will impact individual, student, duo, and family premium plans. According to a local tech outlet, the individual plan is increasing by 15% to $12.69 from $10.99 monthly. Student plans saw a 5% bump to $6.39, while duo and family plans rose 19% and 24% respectively.
In emails supplied to customers, Spotify stated the higher individual rate allows continuing innovation and new features. Downgrading or cancelling was offered for unhappy subscribers. This follows a similar June price adjustment in the U.S. as Spotify aims to invest further in its platform.
When asked, a Spotify representative said periodic price updates consider listener value, local economies, and competition. However, they declined detailed comment as Amazon, Apple and themselves have challenged the new tax in court seeking review.
Industry leaders warned the CRTC a year ago of undesirable choices like cost cuts or rises should extra fees be imposed. While supporting artists, foreign services argue streaming differs greatly from traditional radio models.
