Spotify Price Increase Set for Early 2025, Report Confirms

Spotify is preparing to raise its subscription prices in the United States. The change could happen as early as the first quarter of 2025. This news comes from a recent report by the Financial Times.

The planned price hike follows a similar increase implemented earlier this year. It reflects the streaming giant’s ongoing push toward sustainable profitability.

Details of the Planned Price Adjustment

This would be the second price increase for U.S. subscribers in a short period. In 2024, Spotify raised its individual premium plan by one dollar to $11.99 per month. A similar one-dollar increase had occurred the previous year, moving the price from $9.99 to $10.99.

The exact amount of the new 2025 increase remains unconfirmed. Past trends suggest another one or two-dollar jump is likely. The company has not publicly commented on the report.

Industry Pressure and Strategic Shifts

The music industry has actively encouraged streaming services to raise prices. Major record labels argue that higher subscription fees are necessary as growth in the U.S. streaming market slows. According to the RIAA, paid streaming revenue growth was just 3.3 percent at the end of last year.

This is a significant slowdown from the nearly 29 percent growth seen five years ago. Sony Music Group’s CEO has previously suggested platforms should also monetize their free, ad-supported tiers more effectively.

Spotify’s move aligns with a broader company transition. Founder Daniel Ek will step down from the CEO role at the start of next year. New co-CEOs Gustav Söderström and Alex Norström will helm the company during this period.

For Spotify, a price increase is a direct path to improving its financial performance. The company celebrated its first full year of profitability only recently. This strategic step aims to secure its long-term financial health.

The upcoming Spotify price increase marks a pivotal moment for the streaming landscape. It underscores the industry’s collective shift toward stabilizing revenue after years of rapid expansion.

Info at your fingertips

When will the Spotify price increase happen?

The price hike is expected in the first quarter of 2025. This timeline is based on reporting from the Financial Times. An official announcement from Spotify is still pending.

How much will my Spotify subscription cost?

The exact new price has not been confirmed. Past increases have been by one dollar, so a similar adjustment is possible. The current individual plan is $11.99 per month.

Why is Spotify raising prices again?

The move is driven by pressure for better profitability and industry calls for higher revenue per user. Record labels have advocated for price increases as streaming growth slows. It also supports Spotify’s own long-term financial goals.

How does this affect the music industry?

Higher subscription prices typically lead to increased royalty payouts to artists and labels. The industry has argued that this is essential for sustainable growth. It helps offset the plateauing number of new subscribers in mature markets.

Are other streaming services raising prices too?

Other major platforms have also implemented price increases in recent years. This trend indicates a broader industry shift. Companies are focusing on revenue growth from existing users rather than just acquiring new ones.

Trusted Sources

Financial Times, Reuters, RIAA (Recording Industry Association of America)