Spotify Inc. (NYSE:SPOT) announced on Monday that it will increase the monthly price of its premium individual subscription in select markets from September.
Spotify Hikes Global Rates Amid Push for Profit, Growth
The Swedish streaming giant is increasing its monthly subscription fee from 10.99 euros to 11.99 euros ($13.86). The price hike will impact users across South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region.
Check out the current price of SPOT stock here.
Spotify will begin notifying subscribers via email over the next month about the upcoming price hike. The company has previously relied on price increases and cost-cutting strategies to secure its first annual profit in 2024.
Spotify has been growing its video content library in an effort to draw more subscribers. Its Partner Program, which provides monetization opportunities for podcast creators, has contributed to a notable rise in video content on the platform.
CEO Daniel Ek highlighted a “very positive uptick” in the U.S. market after Apple Inc. (NASDAQ:AAPL) approved Spotify’s app update, allowing it to display subscription prices and include external payment links.
Spotify’s decision to increase its premium subscription price comes as a surprise, given that the company’s executives had previously addressed concerns over its pricing strategy during the second-quarter 2025 earnings call.
The executives had then explained why Spotify doesn’t raise subscription prices more quickly in developed markets, especially when platforms like Comcast Corp‘s Peacock (NASDAQ:CMCSA) have done so despite lower engagement.
Notably, the company saw a rise in monthly active users and premium subscribers in the second quarter. However, increased tax expenses tied to employee salaries led to a loss for the period and weighed on its profit outlook for the third quarter.
A significant miss on earnings per share and revenue, coupled with a conservative outlook for the upcoming quarter, weighed heavily on investor sentiment.
Benzinga Edge Stock Rankings shows that Spotify had a strong price trend over the long term and medium term, but not short term. Its momentum ranking was 91.79, whereas its growth ranking was 91.65; the details of other metrics are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
