Spotify Plans US Subscription Price Increase

Spotify plans to raise its US subscription prices in the first quarter of next year, according to a report citing three individuals familiar with the matter. This will be the company’s first price increase in the United States since June 2024.

Credit: SPOTIFY

The streaming service previously announced price increases in Aug. These changes affected markets including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region.

Prices in these markets rose to 11.99 euros from 10.99 euros per month, with the new rate equivalent to USD 13.82.

Credit: SPOTIFY

Spotify has relied on price increases in recent years to boost earnings growth. The company is confident that its widespread use ensures customer retention.

Its premium individual plan saw cost increases in more than 150 markets during the Sept. quarter. Earlier this month, Spotify predicted fourth-quarter profit above market expectations, banking on strong user growth and holiday season price hike benefits.

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• Spotify will increase US subscription prices in the first quarter of next year.

• This marks the first US price hike since June 2024.

• Previous international price increases were implemented in Aug.

Source: REUTERS