Spotify Plans US Price Hike in Early 2025, Financial Times reports
Spotify is preparing to increase subscription prices for its US customers in the first quarter of next year, according to a report published by the Financial Times.This would be the streaming giant’s first price increase in the US as July 2024, following recent adjustments in the U.K., Switzerland, and Australia.
currently, a Spotify Premium subscription costs $11.99 per month in the United States. The service debuted in the country 14 years ago with a monthly price of $9.99.
Analysts at JPMorgan estimate that a $1 monthly price increase in the US could boost Spotify’s annual revenue by approximately $500 million. The potential price rise comes amid pressure from major record labels, who argue that streaming service fees haven’t kept pace with inflation and are comparatively low to services like Netflix.
The news follows Spotify’s recent announcement that founder Daniel Ek is stepping down as CEO, to be replaced by co-CEOs Gustav Söderström, currently co-president and chief product and technology officer, and Alex Norström, co-president and chief business officer.
