“Spotify is preparing a price hike in the US as soon as the first quarter of next year, according to a report from the Financial Times. The move would mark the first time Spotify has raised prices in the US since 2024, when subscriptions went up by $1 to $11.99. It’s unclear how much Spotify”, — write: www.hollywoodreporter.com
The move would mark the first time Spotify has raised prices in the US since 2024, when subscriptions went up by $1 to $11.99. It’s unclear how much Spotify would raise prices this time, although price raises in the past several years have been $1. Spotify previously raised its price from $9.99 to $10.99 in 2023.
The news would be welcome from the music industry, as the major music companies have called for price increases on streaming services in recent years as streaming growth in the US has slowed given market saturation. (Paid streaming revenue grew in the US just 3.3 percent at the end of last year compared to nearly 29 percent five years prior, according to the RIAA.) Sony Music Group CEO Rob Stringer, for example, has previously suggested platforms like Spotify introduce some sort of fee for its freemium ad-supported tiers.
As streaming revenue has slowed, the record labels have been looking for more revenue opportunities elsewhere. Universal Music Group has spoken consistently about better monetizing so-called “super-fans” who would be willing to spend more on exclusive opportunities with their favorite artists such as limited-edition music and merch, and the record companies have announced several AI music partnerships in the past month.
Spotify did not respond to a request for comment.
The move comes at a transitional time for the company. Founder Daniel Ek announced he’d be moving out of his CEO role at the beginning of next year, while Gustav Söderström and Alex Norström were named co-CEOs. For Spotify, a price increase would help the company’s longer-term profitability goals, as the company only posted its first-ever full year of profitability a year ago.
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