Spotify plans to raise its Premium prices in the US as soon as the first quarter of 2026.
That’s according to the Financial Times, which reported Monday (November 24), citing three people familiar with the matter, that the move comes as Spotify works to demonstrate sustained profitability.
The company achieved strong operating profitability in the three months to the end of September. Quarterly operating income in Q3 jumped 33% YoY to €582 million ($670m). The company expects an operating income of €620 million ($714m) for Q4.
The streaming giant achieved its first full year of operating profit in 2024 when it logged €1.4 billion ($1.495bn) in profit.
Spotify has already implemented price hikes in several international markets in recent months, including the UK, Switzerland and Australia. As MBW reported last month, analysts are projecting a US price hike by early 2026.
A US Spotify Premium subscription currently costs $11.99 per month, up from $9.99 when the service launched in the country 14 years ago. The US, the world’s largest recorded music market, last saw a price rise from Spotify in July 2024.
Morgan Stanley analysts described Spotify’s September price increases in Australia as “the beginning of a pricing cycle in ’26” and “creates a template” for pricing in other markets where Spotify bundles music and audiobooks, Billboard reported, citing an October 21 investor note.
Analysts at J.P. Morgan echoed that view in an October 14 note, forecasting a US increase “by year end or early 2026.” They estimate that recent hikes in Germany, Austria, and Liechtenstein represent just 25% to 30% of subscription revenue but could add €380 million ($437m) in incremental annual revenue, Billboard reported. A US increase, they reportedly said, could contribute another €425 million ($489m).
Guggenheim analysts also expect a US price change by the end of 2025, noting that Spotify’s latest licensing renewals with record labels “included pending increases in per-subscriber minimum fees,” which would likely be passed on to consumers.
Citing more analysts, the FT said a price hike in the US, Spotify’s largest market, is critical for the company’s stock. The FT noted that the company’s stock has climbed more than 30% this year, outpacing the S&P 500’s roughly 14% gain over the same period. The stock reached an all-time high of $785 on June 27. As of Monday, Spotify’s NYSE-listed stock inched up 0.2% from the previous trading day to $584.98, achieving a market capitalization of $120.3 billion.
“Questions around the timing of the potential US pricing step-ups . . . have taken a toll on sentiment,” Deutsche Bank analysts wrote last month, according to the FT. Meanwhile, JPMorgan analysts have estimated that a $1 monthly increase in the US would add about $500 million to Spotify’s annual revenue.
The news outlet said the major record labels have been pushing Spotify, Apple Music, and other streaming platforms to raise subscription fees, arguing that prices have not kept pace with inflation and remain low compared to video services like Netflix.
During an earnings call earlier this month, incoming Co-Chief Executive Officer Alex Norström addressed questions about US pricing strategy. “Price increases are part of our strategy. You have seen this over the last couple of years. Of course, we will continue to do so, but in a thoughtful way.”
“We will act when the time is right for each specific market. We will do it at the appropriate price based on those market dynamics.”
The price increase will take effect as Spotify undergoes a leadership transition. In September, founder and CEO Daniel Ek announced he would step down from the role and become executive chair of the company. Starting in early 2026, Ek will hand the CEO position to two senior executives: Norström (co-President and Chief Business Officer) and Gustav Söderström (co-President and Chief Product and Technology Officer), who will serve as co-CEOs.
As of the end of September, Spotify’s global Premium Subscriber base stood at 281 million paying users, up by +5 million net subs on the 276 million that the company counted at the end of the prior quarter (Q2 2025).
Spotify’s leadership team also revealed on the company’s earnings call that the price hikes for the service in other markets globally haven’t resulted in an increase in subscriber churn or a slowdown in subscriber growth.
“We… saw steady retention rates following the rollout of our recent price increases across more than 150 markets. These results show the power of the product and the loyalty of our subscribers,” Norström said on the call.
He reiterated what Spotify execs have been saying in recent quarters – that price hikes are now an ongoing part of Spotify’s strategy.
In August, Spotify signaled price adjustments across multiple markets outside the US, including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region.
Elsewhere, globally, Spotify is dabbling with tiered Premium Pricing. Earlier this month, the company launched a higher-priced Premium Platinum tier in India, Indonesia, Saudi Arabia, South Africa, and the United Arab Emirates.
The new tier, priced at more than double Spotify’s standard offering in these markets, includes lossless audio, AI-powered features, and exclusive perks.
The music industry, particularly the major music companies, has been waiting patiently for Spotify to launch a higher-priced ‘Supremium‘ tier in mature streaming markets. Bloomberg reported in February that Spotify was considering charging up to $5.99 more per month on top of a Premium subscription for access to a ‘Music Pro‘ tier, which would include various ‘superfan’ perks.
However, when Spotify finally launched lossless audio in September, it made the feature available to standard Premium subscribers for no additional charge, rather than gating it behind a higher-priced tier, leaving questions about the company’s super premium strategy.
This month’s Premium Platinum launch in those select emerging markets, as part of a broader pilot for a new three-tier subscription structure, finally sees Spotify experiment with Premium price segmentation, testing a model that has already proven successful in China at Tencent Music Entertainment.
News of Spotify’s potential Premium price increases in the US in Q1 arrives two months after the RIAA revealed that the United States’ recorded music industry saw revenue growth of just 0.9% YoY in the first half of 2025.
Data published by the org in September showed that the United States generated USD $5.59 billion in wholesale recorded music revenue in the six months to end of June.
One positive stat: There were 105.3 million total paid premium music subscriptions in the period, up 6.3 million YoY.
That +6.3 million YoY net growth was significantly higher than the equivalent growth seen in H1 2024 (+2.5m).Music Business Worldwide
