Spotify has begun notifying its US Premium subscribers of a forthcoming price increase, again raising its monthly plan rate by a dollar beginning with February billing cycles, a step that aligns with expectations set late last year.
In December, Spotify was reportedly preparing its first US subscription hike since July 2024, following mounting pressure from major record labels to lift prices they labels claimed have lagged inflation and trailed other subscription media services. Record companies have argued that music streaming remains underpriced relative to platforms such as Netflix, of whose ad-free plans start at $17.99 per month.
At the time, analysts suggested even a $1 increase could materially impact Spotify’s top line, with JPMorgan estimating roughly $500 million in additional annual revenue from such a move. Spotify had already implemented recent price increases in several international markets, including the UK, Switzerland, and Australia.
In its announcement about the price hike, the company said, “Occasional updates to pricing across our markets reflect the value that Spotify delivers, enabling us to continue offering the best possible experience and benefit artists.”
The pricing update comes as Spotify continues to lean heavily on premium subscriptions for growth. In its third-quarter earnings, the company reported revenue of €4.27 billion, up 12% year over year, driven primarily by subscriber gains. Advertising revenue, however, remained flat at €446 million, underscoring ongoing challenges on the ad side of the business.
