Music streaming platform Spotify has announced an increase in the price of its Premium subscription in the United States. The company said the new price will
take effect over the next month, making it the first hike for US users since 2024. According to a Bloomberg report, Spotify will raise the cost of its Premium plan by 8%, increasing the monthly fee from $12 to $13. The price hike will also apply to users in Estonia and Latvia. Spotify confirmed the change on Thursday (January 15) saying customers will be informed directly by email about the new pricing and what it means for their subscription. The company said the decision was taken to highlight the value it offers and to support artists and creators on the platform.
Why Is Spotify Increasing Its Prices?
Spotify said that “occasional updates to pricing” are necessary to keep improving the service and to ensure artists are paid fairly. Rising costs, inflation, and increased spending across the streaming industry have pushed companies to review their subscription fees.
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Other major platforms, including Netflix, have also raised prices in recent years. Spotify faces similar pressure to keep up with higher operational costs while continuing to invest in new features, content, and artist payments.
The company said the price update will help it “continue offering the best possible experience” for users around the world.
How Will This Affect Spotify Users?
Spotify has more than 280 million paid subscribers globally, and the US remains its largest market. Despite the price increase, analysts believe most users are unlikely to cancel their subscriptions.
Reports show that Spotify users are among the most loyal in the streaming industry. Many have spent years building playlists, saving albums, and organizing podcasts, making them less likely to switch services.
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Following the announcement, Spotify shares rose 3% in pre-market trading, showing that investors welcomed the move as a positive step for the company’s revenue growth.
