Spotify, the popular audio streaming service, has announced a price increase for its individual subscription plan in the U.S., marking the third hike in three years. The monthly cost will rise from $11.99 to $12.99, with the new price taking effect from the next billing cycle.
The adjustment comes as Spotify aims to enhance its revenue streams. The company cited the value it provides to users and the support it offers to artists as justification for the move. Financial projections suggest that this price adjustment could potentially boost Spotify’s revenue by $500 million.
Spotify has a vast user base exceeding 281 million paid subscribers globally, with a significant portion located in North America. This change in pricing strategy is not limited to the U.S., as Spotify is also implementing similar adjustments in Estonia and Latvia.
Previously, Spotify raised its U.S. prices from $9.99 to $10.99 in 2023, followed by another increase to $11.99 in 2024. These incremental adjustments reflect the company’s ongoing efforts to optimize its subscription model and maintain its market position.
Source: TechCrunch