Spotify is set to bump up its U.S. subscription prices in the first quarter of next year, according to a report by the Financial Times. The streaming giant recently implemented subscription hikes in countries such as the United Kingdom, Switzerland, and Australia.
Currently, subscribers in the U.S. pay $11.99 a month. When Spotify launched in the United States fourteen years ago, the monthly fee was $9.99. Analysts estimate that a modest increase of just one dollar per month could expand Spotify’s annual revenue by around $500 million. This will represent its first price increase in America since July 2024.
Major record labels have been pushing Spotify and other streaming platforms to raise subscription rates. They argue that prices have not kept pace with inflation and remain lower than those charged by services like Netflix.
The timing of the report follows a significant leadership shift at Spotify. Founder Daniel Ek has stepped down as CEO. In his place, the company has announced a new co-leadership arrangement featuring Gustav Soderstrom, who currently serves as co-president and chief product and technology officer, and Alex Norstrom, who serves as co-president and chief business officer.
Spotify’s planned U.S. price increase shows that the company is hitting the reset button on monetization while also trying to address demands from record labels. However, with Americans currently battling high housing costs, skyrocketing grocery bills, and threats to affordable healthcare, Spotify may see its U.S. customer base say goodbye.
