According to a recent Financial Times article, Spotify intends to increase its subscription fees in the United States during the first quarter of next year. This would be the first time the streaming platform has raised its U.S. prices since July 2024. The company has already implemented similar price hikes in countries such as the U.K., Switzerland, and Australia.
At present, a Spotify subscription in the U.S. is priced at $11.99 per month. When Spotify debuted in the country 14 years ago, the monthly cost was $9.99.
The article notes that analysts at JPMorgan predict a $1 monthly increase in the U.S. could boost Spotify’s yearly revenue by approximately $500 million.
Furthermore, leading record companies have been pressing Spotify and other music streaming services to raise their subscription rates, claiming that current fees have not kept up with inflation and are still lower than those of platforms like Netflix.
This news follows Spotify’s recent announcement that its founder, Daniel Ek, will be stepping down as CEO. The company will appoint two co-CEOs: Gustav Söderström, who is currently co-president and chief product and technology officer, and Alex Norström, co-president and chief business officer.
