Spotify to Raise US Subscription Prices Early Next Year
Spotify will raise subscription prices for users in the United States in the first quarter of next year, according to the Financial Times, citing sources familiar with the matter.
The report links pressure from major record labels on both Spotify and Apple Music to raise subscription prices. They argue prices have lagged inflation, while subscriptions remain cheap compared to video services such as Netflix.
Wall Street analysts say the price increase is critical to Spotify's stock, as the company pushes to show profitability. JPMorgan analysts have projected a $1-a-month price rise would boost Spotify's annual revenue by $500 million.
Spotify recently raised prices in multiple countries across South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region. The company has not raised prices in the U.S. since July 2024.
A Spotify subscription costs $11.99 a month in the U.S., compared with $9.99 when it launched in the country 14 years ago. Spotify currently costs $1-a-month more than Apple Music for individual plans.
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