Spotify Price Increase: US Users to Pay More in 2024

Spotify Announces Upcoming Price Adjustments in the U.S.

According to a recent report published by the Financial Times, Spotify is preparing to implement price increases for its U.S. subscribers during the initial quarter of the coming year.

This adjustment will represent the streaming platform’s first price hike within the United States since July 2024.

Previously, the company has already adjusted pricing structures in various international markets, including the United Kingdom, Switzerland, and Australia.

Current and Historical Subscription Costs

Currently, a Spotify subscription is priced at $11.99 monthly for users in the U.S.

For context, when the service was initially introduced to the U.S. market 14 years ago, the monthly cost was $9.99.

Potential Revenue Impact

Analysts at JPMorgan estimate that a $1 increase to the monthly subscription fee in the U.S. could potentially boost Spotify’s yearly revenue by approximately $500 million.

Industry Pressure for Price Increases

Major record labels have been actively advocating for higher subscription prices across music streaming services like Spotify.

These labels contend that current fees haven't adequately adjusted to reflect inflationary pressures and are comparatively low when benchmarked against other streaming services, such as Netflix.

Leadership Transition

This news arrives shortly after Spotify announced the departure of its founder, Daniel Ek, from the role of CEO.

Ek will be succeeded by a dual-leadership structure, with Gustav Söderström, currently serving as co-president and chief product and technology officer, and Alex Norström, co-president and chief business officer, both assuming the position of co-CEO.

Söderström and Norström will jointly lead the company forward.