Spotify is reportedly preparing to increase its Premium subscription prices in the United States as early as the first quarter of 2026. The update, reported by the Financial Times and backed by multiple analyst notes, follows the company’s push to maintain profitability and align pricing with global trends.
The news comes after Spotify posted strong financial results. In Q3 2025, operating income rose 33% year over year to €582 million, with the company expecting €620 million for Q4. Spotify logged its first full year of operating profit in 2024, reaching €1.4 billion.
The upcoming US price adjustment follows recent increases across the UK, Switzerland, Australia, and several other regions. Analysts from Morgan Stanley, J.P. Morgan, and Guggenheim have all projected a US hike by late 2025 or early 2026, estimating that even a $1 increase could generate roughly $500 million annually. Spotify’s US Premium tier currently sits at $11.99 per month, last raised in July 2024.
Record labels have continued pressuring major DSPs to raise subscription prices, arguing the rates haven’t matched inflation or the pricing of video platforms. Analysts say a US increase is crucial for Spotify’s stock momentum, which has gained more than 30% this year and reached a high of $785 in June.
Incoming co-CEO Alex Norström recently addressed the strategy, emphasizing that price increases will continue “in a thoughtful way” based on market conditions. Spotify also signaled broader pricing changes through its multi-tier experiments, including the Premium Platinum tier launched this month in India, Indonesia, Saudi Arabia, South Africa, and the UAE, offering lossless audio and new AI features at a higher price point.
The potential US increase would take effect during Spotify’s leadership transition. Founder Daniel Ek will shift into the role of executive chair in early 2026, passing the CEO position to Norström and Gustav Söderström, who will serve as co-CEOs.
As of the end of September, Spotify counted 281 million global Premium subscribers, up 5 million from the previous quarter. The company reported no increase in churn following recent international price hikes, reinforcing its confidence in subscriber loyalty.
Spotify’s strategy shift comes amid slowing US recorded-music revenue growth. The RIAA reported only 0.9% year-over-year gains in the first half of 2025, though paid subscriptions rose 6.3 million during the same period.
A confirmed US price increase is expected to be announced closer to early 2026.
