Planned price increase marks first U.S. change since mid-2024
Spotify is preparing to raise subscription prices in the U.S. during the first quarter of next year, according to a report from the Financial Times. The adjustment would be the streaming platform’s first domestic price change since July 2024, following recent increases in markets such as the U.K., Switzerland, and Australia. A standard Spotify subscription in the U.S. currently costs $11.99 per month, compared with the $9.99 price at launch 14 years ago.
Analyst estimates on potential revenue impact
JPMorgan analysts estimate that a $1-per-month price increase in the U.S. could add roughly $500 million in annual revenue for the company. The report noted that major record labels have encouraged Spotify and competing streaming services to raise subscription fees, arguing that prices have not kept pace with inflation and remain low compared with platforms such as Netflix.
Leadership transition underway
The pricing report comes shortly after Spotify announced that founder Daniel Ek will step down as CEO. The company will transition to a dual leadership structure led by Gustav Söderström, currently co-president and chief product and technology officer, and Alex Norström, co-president and chief business officer.
Featured image credits: Reet Talreja via Unsplash
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