Spotify Technology S.A. (NYSE:SPOT) is reportedly preparing to raise subscription prices in the U.S. early next year.
US Price Increase Expected In Early 2025
The planned hike, set for the first quarter of 2026, would mark Spotify's first U.S. price increase since July 2024, reported the Financial Times, citing people familiar with the matter.
The move follows price adjustments in markets including the U.K., Switzerland and Australia. Analysts have argued that a U.S. increase is essential, with Deutsche Bank noting that uncertainty around timing has weighed on investor sentiment.
JPMorgan estimates that even a $1 monthly increase could add roughly $500 million to Spotify's annual revenue.
Spotify did not immediately respond to Benzinga's request for comments.
See Also: Spotify Remains In Rhythm But Ad Market Needs Remix
Labels Push For Higher Streaming Fees
Major record labels have reportedly been pressuring Spotify, Apple Inc. (NASDAQ:AAPL) Music and other platforms to raise prices.
They argue that subscription costs have failed to keep up with inflation and remain inexpensive compared to video streaming services like Netflix Inc. (NASDAQ:NFLX), the report said.
Spotify's U.S. plan, currently $11.99 per month, launched at $9.99, 14 years ago.
Strong User Growth But Softer Monetization
Spotify posted strong results in the third quarter of 2025, reporting earnings of $3.83 per share and revenue of $4.99 billion, both beating expectations. Monthly active users rose to 713 million, while premium subscribers climbed 12% to 281 million.
Despite the user surge, monetization weakened. Premium average revenue per user slipped 4% year over year and ad-supported revenue fell 6%.
Spotify Heads Into A New Leadership Era
The pricing shift comes as CEO Daniel Ek prepares to step down and transition to executive chair, with deputies Gustav Söderström and Alex Norström set to take over early next year.
Price Action: Spotify closed at $584.98 on Monday, up 0.23%, with the stock rising further to $590 in after-hours trading. Year-to-date, the shares have risen by 27.78%.
Benzinga's Edge Stock Rankings indicate that Spotify is trending downward across short, medium and long-term growth metrics. Click here to see how it compares with its peers.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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