Spotify plans to raise prices in Europe and Latin America
With streaming growth slowing and profitability in focus, Spotify is set to introduce fresh price increases across major global markets.
Spotify prices set to rise in Europe and Latin America
Spotify is reportedly preparing to raise its subscription prices across Europe and Latin America as early as June, according to the Financial Times. The move comes shortly after the company quietly increased prices across the Benelux region (Belgium, Netherlands, and Luxembourg).
Reports suggest that the prices will rise by the equivalent of €1 on individual subscriptions. That’s less than the recent €2 jump seen in the Netherlands and Luxembourg where a premium subscription now costs €12.99. Belgium saw a rise to €11.99. In those same countries, family plans increased by 22% to €21.99 (€20.99 in Belgium), and student plans increased €1 to €6.99.
Notably, the US (Spotify’s largest market) will be excluded from these upcoming adjustments having last seen a price increase just last year.
Why now?
Spotify’s decision comes as decade-long growth in the music streaming sector begins to slow. As Spotify looks to more expensive and super-premium subscriptions as part of Streaming 2.0 to boost their revenues, increasing the price of their normal premium subscription can also be rewarding.
Over the past 14 years, Spotify has been hesitant to raise prices. In the US, the individual subscription only costs $2 more now than what it was when it first launched ($11.99).
Spotify recorded its first full year of operating profit in 2024, and further price increases are part of a broader strategy to maintain financial sustainability.
Industry support
Many in the music industry have welcomed the idea of price increases, especially as the prices have remained relatively stagnant despite years of inflation. Instead, many would see the price rises as a step toward correcting the undervaluation of music. Music subscriptions have become vastly cheaper in comparison to video streaming services, with many arguing it has been underpriced. Higher subscription fees could lead to greater revenues.
In theory, these price rises could be passed to artists via increased royalty rates. However, whether these increases will improve payouts remains unclear.
While observers have questioned how consumers will react to paying more money, perhaps price rises are long over due within the industry.
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