Like any evolving market shaped by commerce and technology, digital music streaming continues to shift. A new Financial Times report indicates that major record labels are pushing streaming platforms to raise subscription prices in order to maintain profit margins across the industry.
Spotify is already moving in that direction. According to the report, the company will raise U.S. subscription prices in the first quarter of 2026. Its last increase was in July 2024, when the monthly rate rose to $11.99 from the original $9.99 price that held for more than a decade. Spotify has also raised prices in multiple international markets recently, including the United Kingdom, Switzerland, and Australia.
Major labels are reportedly urging not just Spotify but all DSPs, such as Apple Music; to adopt similar price increases. Their argument is that subscription costs have not kept pace with inflation, and that compared to video platforms like Netflix, music streaming remains underpriced. FT also notes that the global music industry’s growth has slowed, with revenue expansion last year reaching only half of the previous year’s pace, according to IFPI.
Analysts expect Spotify’s planned price changes to strengthen its bottom line. JPMorgan projected a potential $500 million revenue boost if the service raises rates by just one dollar per month. Spotify leadership echoed this outlook, with Alex Norström stating that the company will adjust prices based on the timing and conditions of each market. Norström and Gustav Söderström are set to take over the CEO role as cofounder Daniel Ek steps down.
Beyond pricing, Spotify recently acquired the sampling database WhoSampled, prompting questions within hip-hop and the wider industry about how the platform may approach sampling rights and discovery tools moving forward. With subscription shifts, executive changes, and new acquisitions, the streaming landscape appears poised for significant developments in both the near and long term.
