Spotify is reportedly planning to raise its Premium subscription prices in the United States as soon as the first quarter of 2026. This move, which would be the second US hike since mid-2024, is largely driven by investor pressure and the company’s aggressive strategy to demonstrate sustained profitability.
Citing sources familiar with the matter, the Financial Times reports the price increase is coming soon after similar adjustments were made in major international markets, including the UK, Switzerland, and Australia. The current US Premium plan costs $11.99 per month.
The Profitability Mandate
The push for a higher price point in Spotify’s largest market is directly tied to the company’s financial goals. While Spotify achieved its first full year of operating profit in 2024 and saw strong operating income in Q3 2025 (jumping 33% YoY), analysts view a US price increase as critical for boosting the company’s stock.
- Analyst Projections: J.P. Morgan estimates a mere $1 monthly increase in the US could contribute an additional €425 million (approx. $489 million) in incremental annual revenue.
- Market Pressure: Major record labels are also reportedly pushing streaming platforms to raise fees, arguing that music prices have not kept pace with inflation compared to video services like Netflix.
Leadership and Strategy
The price hike will coincide with a major leadership transition: founder Daniel Ek is stepping down as CEO to become Executive Chair in early 2026. He will be replaced by co-CEOs Alex Norström and Gustav Söderström.
Incoming Co-CEO Alex Norström confirmed the strategy during a recent earnings call, stating, “Price increases are part of our strategy… We will act when the time is right for each specific market.” This reiterates Spotify’s position that price adjustments are now an ongoing part of its business model, a view analysts have described as “the beginning of a pricing cycle in ’26.”
Crucially, the company notes that previous price hikes in 150+ global markets did not result in an increase in subscriber churn, validating their confidence in the loyalty of their massive base, which stood at 281 million global Premium Subscribers as of September 2025.
Photo: SOPA/Alamy
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