Spotify is planning to raise subscription prices in the United States in the first quarter of next year. This move would mark the streaming service’s first price increase in the US since July of 2024. The company has recently raised prices in several other countries, including the United Kingdom, Switzerland, and Australia.
A Spotify subscription currently costs $11.99 per month in the US. When the service first launched in the country fourteen years ago, it cost $9.99 per month. Analysts from JPMorgan have estimated that a price increase of one dollar per month in the US could boost Spotify’s annual revenue by approximately $500 million.
Major record labels have been encouraging Spotify and other music streaming platforms to raise their subscription prices. They argue that the fees have not kept up with inflation and remain low compared to services like Netflix.
This report comes a few weeks after Spotify announced that its founder, Daniel Ek, is stepping down from his role as CEO. The company is replacing Ek with two co-CEOs. They are Gustav Söderström, the current co-president and chief product and technology officer, and Alex Norström, the co-president and chief business officer.