Spotify announces price hike for premium users in US after two years – here’s what customers should know
According to Bloomberg, music streaming platform Spotify Technology SA will increase the price of its premium subscription service by 8% in the US.
The Sweden-based company announced on Thursday, January 15 that prices will increase from $12 to $13 per month in the USA, its largest market. Prices will also increase in Estonia and Latvia. The news portal noted that US consumers have not seen a price increase since 2024, even though the company increased fees in some countries last year.
Customers receive emails
Spotify said customers will receive an email with the latest plans and prices.
“We are updating Spotify’s price. Over the next month, Premium subscribers in the US, Estonia and Latvia will receive an email explaining what this update means for their subscription,” the company said in a statement on Thursday, January 15.
“Occasional updates to pricing across our markets reflect the value Spotify delivers, ensuring we continue to deliver the best possible experience and benefit artists,” the statement added.
Spotify shares rose 3% in premarket trading Thursday following the news. The company stated that this move will help it “continue to deliver the best possible experience and benefit artists.”
Pressure to increase subscription fees
Spotify, which has more than 280 million paying subscribers, is facing pressure to raise its prices to cover inflation and rising costs seen on other consumer services such as Netflix Inc, the news portal said. The platform has extremely loyal users who spend years organizing their music and audio libraries. Reports show that Spotify users are among the least likely to cancel their subscriptions compared to other major video or audio streaming services in the US.
Spotify has become the dominant player in the music industry over the last two decades and has proven its profitability. But growth has slowed as broadcast markets in key regions have matured. Over the past few years, Spotify has been developing a new, higher-priced tier aimed at its most loyal users.
(With input from Bloomberg.)
