Spotify is preparing to raise subscription prices in the United States in the first quarter of next year, according to people familiar with the situation. The company is moving toward this decision as it focuses on delivering consistent profits in its largest market.
The music streaming service has already raised prices in several countries, including the UK, Switzerland and Australia, but the upcoming increase will be its first in the US since July 2024. Spotify’s stock has risen more than 30 per cent this year, far outpacing the broader index, which gained about 14 per cent. Analysts have said that a US price change is important for investor confidence, noting that “questions around the timing of the potential US pricing step-ups have taken a toll on sentiment.”
Research groups at major financial institutions have suggested that even a modest increase could have a significant impact. Analysts at one firm estimated that a 1-dollar monthly increase in the US could add 500 million USD to Spotify’s annual revenue. The company declined to comment on the reports.
Music labels have been urging Spotify, Apple Music and other streaming platforms to raise subscription costs. They argue that fees have not kept up with inflation and remain low when compared with video streaming services such as Netflix. A standard Spotify subscription in the US costs 11.99 USD a month, up from the 9.99 USD price when the service entered the market 14 years ago.
The expected price change comes at a time when global music industry growth is slowing. A leading trade group reported that worldwide music revenue growth fell by half last year, suggesting that the long period of rapid expansion in the industry is beginning to ease.
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