Key Takeaways
1. Spotify plans to raise US subscription prices in early next year.
2. Expected price increase may be around $1 per month for individual plans.
3. Previous major price hike occurred in June 2024, raising individual accounts to $11.99.
4. External pressure from record labels is influencing the decision to increase fees.
5. Spotify has recently added features like lossless audio, justifying a potential price rise.
Spotify is said to be planning a rise in its subscription prices in the United States beginning early next year. A report from the Financial Times mentions that Spotify is “getting ready to raise US subscription prices in the first quarter of next year” as the company aims to show its investors that it can maintain profitability over time.
Price Adjustments Likely
Even though Spotify hasn’t confirmed the exact increase, US users might experience a small price change. Typically, the company raises the price of its individual plan by about $1 per month at a time. This follows a long-standing trend since the service began, having only increased by $2 in total over the last 14 years. The previous major adjustment took place in June 2024, when the price for an individual account rose to $11.99 per month, while the Family plan went up to $19.99 per month.
Industry Pressure Influencing Changes
It seems external factors are pushing this potential change, as major record labels have been urging Spotify and its competitors to raise their fees. They claim that music streaming is still quite affordable compared to video platforms like Netflix. Moreover, Spotify has recently implemented several updates to its service, including the introduction of lossless audio, making a price increase more understandable.
This possible increase in the US comes after Spotify had already raised subscription fees in parts of South Asia, Europe, and Latin America just a few months back. Currently, US users are paying $11.99 for Individual plans, $16.99 for Duo accounts, $19.99 for Family plans, and $5.99 for Student subscriptions, but these numbers might change soon if the reports are accurate.
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