Spotify announced on Monday that it will increase the monthly price of its Premium Individual subscription from September in several key regions, including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific. The subscription cost will rise to €11.99 ($13.86) from the current €10.99.
Spotify has 102.12 million Premium subscribers in Europe, 69 million in North America, and 63.48 million in Latin America at the end of the second-quarter of 2025.
Spotify reported strong performance, with monthly active users (MAUs) growing by 18 million to reach 696 million, surpassing guidance by 7 million, in Q2-2025.
Premium subscribers of Spotify rose by 8 million, bringing the total to 276 million, a 12 percent year-over-year increase and 3 million ahead of expectations.
Total revenue of Spotify reached €4.2 billion, marking a 15 percent year-over-year growth, with premium revenue up 16 percent driven by both subscriber gains and higher average revenue per user (ARPU) from price increases.
For Q3, Spotify expects to reach 710 million MAUs and 281 million subscribers, maintaining €4.2 billion in revenue despite a projected €200 million currency-related headwind. ARPU is forecast to remain flat year-over-year on a constant currency basis.
The Swedish streaming giant said users will be notified via email about the changes over the next month. The company cited the price adjustment as part of its strategy to improve margins, following its recent push toward profitability.
The announcement was met positively by investors, with Spotify shares climbing nearly 8 percent on the day. The stock has gained around 40 percent so far in 2025, reflecting growing investor confidence in the company’s long-term strategy, Reuters news report said.
Customer reactions, however, are expected to be mixed. While some users may accept the hike due to expanded features like an increasing library of video content and podcast creator tools, others may express frustration over the recurring price increases. Spotify has previously raised prices as part of efforts to balance rising operational costs and investments in new content.
The company recently reported a rise in monthly active users and premium subscribers in Q2 2025, but higher taxes tied to employee compensation contributed to a quarterly loss and a subdued outlook for Q3.
Spotify is also seeing momentum from regulatory shifts. CEO Daniel Ek highlighted a “very positive uptick” in the U.S. after Apple was forced to allow Spotify to display pricing and offer external payment links within its app. Similar regulatory changes in Europe and the UK could further benefit the streaming platform and its peers.
Despite the price increase, Spotify continues to bet on growth through content innovation and regulatory tailwinds, while hoping its loyal subscriber base will see continued value in its evolving service.
TelecomLead.com News Desk
