Spotify plans to increase subscription prices in the US in the first quarter of next year, according to a new report in the Financial Times. This move marks the streaming service’s first price increase in the U.S. since July 2024. The company recently raised prices in several other countries, including the UK, Switzerland and Australia.
Spotify subscriptions currently cost $11.99 per month in the US, compared to $9.99 per month when the service first launched in this country 14 years ago.
JPMorgan analysts estimate that a $1 monthly price increase in the U.S. could add about $500 million to Spotify’s annual revenue, according to the report.
Additionally, major record labels are urging Spotify and other music streaming platforms to increase subscription prices, arguing that prices have not kept up with inflation and remain low compared to services like Netflix.
The report comes weeks after Spotify announced that founder Daniel Ek would step down as CEO. The company will replace Ek with two co-CEOs: Gustav Söderström, Spotify’s current co-president and chief product and technology officer, and Alex Norström, Spotify’s co-president and chief business officer.
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