Spotify next month will raise the price of its Premium subscription plan from $11.99 to $12.99 a month.
The new rate will be effective in the U.S., Estonia and Latvia.
“Occasional updates to pricing across our markets reflect the value that Spotify delivers, enabling us to continue offering the best possible experience and benefit artists,” the company explained.
Shares in Spotify slipped 2% in morning trading Thursday, but Wall Street analysts have urged the company to consider price increases as a way of restoring more stable revenue. Over the past six months, Spotify’s stock price has fallen more than 25% as the music streamer has undergone restructuring and released disappointing results.
Earlier this month, founder and Daniel Ek shifted from CEO to executive chairman. In his place, Spotify has appointed co-CEOs: Gustav Söderström, co-president and chief product and technology officer, and Alex Norström, co-president and chief business officer.
Spotify said last September that Ek’s new role is in line with European chairman structures. He will determine capital allocation, map the long-term future of Spotify, and provide support to the senior team.
Founded in 2006, Spotify has become a dominant music streamer, with 696M users and 276M paying subscribers across 184 markets. Chief rival Apple has also been raising prices, though Apple Music is part of bundles of services, so its stand-alone price gets minimal attention.
Earlier this week, the Bureau of Labor Statistics published data on inflation for December, noting a sharp increase in streaming prices. The amount Americans paid for video game and streaming rentals and subscriptions jumped 29% compared with December 2024, outpacing goods like coffee and beef. While music streaming did not rise as much, it’s clear which way things are trending.