Spotify raises price in the US
Just as analysts expected, Spotify is increasing the price of its Premium subscription in the US next month.
Spotify announces Premium price increase in the US, Estonia, and Latvia
Last year saw a wave of increases rolled out across global markets, including the UK, Australia, Switzerland, South Asia, and parts of Latin America. It was also rumored that Spotify would be increasing the price in the US early in 2026.
Now, Spotify has made it official. Spotify has confirmed that it’s raising the price of its Premium subscription in the US, Estonia, and Latvia.
How much is Spotify increasing the price in the US?
In the US, Spotify Premium will increase its subscription price from $11.99 per month to $12.99 per month. The new price increase will begin rolling out to customers on their next billing date in February.
Image credits: Spotify
What this means for the music industry
It’s been almost two years since Spotify’s last price increase in the US, and Spotify says its occasional price updates help them to “continue offering the best possible experience and benefit artists”. While the price increase will likely be an unpopular decision with listeners, there could be benefits too.
The US remains Spotify’s largest market. Because of that, analysts estimate that even a $1 monthly increase across the US could generate $500 million in additional annual revenue. That’s a significant sum.
In theory, that could be huge for artists. Higher subscription fees could mean a larger revenue pool to payout to artists, songwriters, and rights holders. Who knows, it could lead to Spotify surpassing the record $10 billion it paid out to the music industry in 2024.
Of course, price increases don’t automatically translate into better royalties. Spotify could reinvest this new revenue into improving its streaming experience. That might mean improved recommendation systems, new discovery tools, or enhanced features which benefit listeners. But, even that could still benefit artists. Smarter discovery and more personalized listening experiences could help artists reach fans who are more likely to stick around, stream their music, and convert into long-term supporters.
The bigger picture
For the music industry, this latest price increase is another reminder that streaming economics are still evolving. As streaming growth slows in certain markets, platforms are under pressure to find new ways to increase revenue, and slowly increasing subscription prices are one way to go about it.
Still, how these additional funds are allocated will be closely watched by everyone across the industry.