Spotify Set to Raise its Premium Subscription Prices in 2026

In the first quarter of 2026, Spotify plans to slightly hike up its premium subscription rates, according to the Financial Times on Monday, November 24th. The move is motivated by Spotify’s decision to demonstrate sustained profitability.

Recently, the company had achieved strong operating profitability, with a third quarterly income going at $670 million and a fourth quarterly income jumping up to $714 million.

Price hikes have already been implemented in many international markets recently, with some including Switzerland, the U.K., and Australia. A U.S. price hike is set to be projected by early 2026.

In the U.S., a Spotify subscription costs $11.99 a month, up from its initial $9.99 price during its first launch in the country fourteen years ago. The U.S. last witnessed a price rise from Spotify in July 2024.

J.P. Morgan analysts predicted a U.S. increase “by year end or early 2026.” They estimated that recent hikes in Austria, Liechtenstein, and Germany already represented 25% to 30% of subscription revenue but could easily add $437 million in incremental annual revenue, as reported by Billboard. A U.S. increase could bring another $489 million to the table.

The FT said that a price hike in Spotify’s largest market, the U.S., would be critical for the company’s stock. The FT noted that the stock had climbed up more than 30% this year, outrunning S&P 500’s 14% gain during the same period. On Monday, Spotify’s NYSE stock achieved a total market capitalization of $120.3 billion.

Deutsche Bank analysts wrote last month, “Questions around the timing of the potential U.S. pricing step-ups… have taken a toll on sentiment.” JP Morgan analysts have also estimated that a $1 monthly increase in the U.S. would increase to $500 million into Spotify’s annual revenue. For Spotify, prices had been urged to increase to keep up with the rising inflation.

Incoming Co-Chief Executive Officer Alex Norström addressed many questions about U.S. pricing strategy. “Price increases are part of our strategy. You have seen this over the last couple of years. Of course, we will continue to do so, but in a thoughtful way.” Then, he adds, “We will act when the time is right for each specific market. We will do it at the appropriate price based on those market dynamics.”