Stay in the loop! Subscribe to our newsletter and gain access to exclusive insights, trends, and news from the world of business and leadership. Don’t miss out!
Monthly subscription to increase to $12.99 in select markets as platform reinvests in creators and content expansion
Spotify is once again raising the price of its premium subscription, continuing a strategy that has become central to the company’s growth model in recent years. The Swedish streaming platform announced on Thursday that it will increase the cost of its monthly Premium plan by $1, bringing the price to $12.99 in the United States, Estonia, and Latvia.
The new pricing will take effect on subscribers’ individual billing dates starting in February, according to the company. Spotify confirmed that affected users will receive an email notification outlining the adjustment. Following the announcement, Spotify shares slipped nearly 3%, reflecting investor sensitivity to pricing changes despite the company’s strong user growth.
Spotify has leaned heavily on incremental price hikes to boost revenue, and so far, the strategy appears to be working. Last year, finance chief Christian Luiga stated that even after raising prices in more than 150 countries, the company did not see a meaningful increase in customer churn. This, he said, underscores Spotify’s focus on retaining existing subscribers rather than aggressively chasing new ones.
The company framed the latest increase as part of its ongoing effort to “keep delivering a great experience,” signaling that additional revenue will be reinvested into platform improvements and creator support. These investments come as competition intensifies across music, podcasting, and video content, with rivals such as YouTube and Netflix expanding their audio and creator ecosystems.
Spotify’s scale continues to grow. Premium subscribers rose 12% year over year to 281 million in the third quarter, while total monthly active users reached 713 million by the end of the period. The company has repeatedly emphasized that its investment priorities remain centered on top-line growth, user acquisition in emerging markets, and the expansion of its content portfolio to include more podcasts, videos, and audiobooks.
Earlier this month, Spotify broadened its monetization program for creators and rolled out new tools for video podcasters, targeting a crowded and fast-evolving segment. The platform has also made music videos available to Premium subscribers in the US and Canada, a move designed to attract both users and advertisers while increasing time spent on the app.
As Spotify continues to balance price increases with feature expansion and creator incentives, the latest hike reinforces a clear message: the company is betting that users will pay more for a platform positioning itself as an all-in-one destination for music, podcasts, video, and beyond.
JPMorgan Chase Chairman and Chief Executive Officer Jamie Dimon received a significant pay increase in 2025,
Elon Musk’s surprise appearance at the World Economic Forum in Davos on Thursday began on an
A public feud between Elon Musk and Ryanair CEO Michael O’Leary has intensified, turning a disagreement
A Foundation Built on the Floor Raffaele Tramma began his career in hospitality on the floor,
In a time when nations are redefining their futures through innovation rather than waiting for perfect
