Spotify, the popular music streaming platform, is planning to implement a subscription price increase in the U.S. during the first quarter of next year. This decision, as reported by the Financial Times, follows recent price adjustments in other regions such as the U.K., Switzerland, and Australia. Currently priced at $11.99 per month in the U.S., the upcoming raise signifies the first price hike since July 2024, when the service was initially introduced at $9.99 per month.
Analysts at JPMorgan have projected that a $1-per-month increment could potentially boost Spotify’s annual revenue by approximately $500 million. The move to raise prices aligns with calls from major record labels advocating for higher subscription fees. These labels argue that current charges have not adequately kept up with inflation and are notably lower compared to platforms like Netflix.
Noteworthy developments within Spotify include the recent announcement of a change in leadership structure. Daniel Ek, the company’s founder, is stepping down as CEO, with Gustav Söderström, the current co-president and chief product and technology officer, and Alex Norström, co-president and chief business officer, set to take over as co-CEOs.
Source: TechCrunch