Spotify has announced a $1 increase in the price of its monthly Premium subscription plan, raising the cost to $12.99 in the United States, Estonia, and Latvia. The Swedish music streaming company said the revised pricing will take effect from February, aligned with individual subscribers’ billing dates. Customers will be notified of the change via email ahead of the update.
Following the announcement, Spotify shares rose nearly 1 percent in premarket trading, reflecting investor confidence in the company’s pricing strategy and long-term growth outlook.
Spotify has increasingly relied on subscription price increases in recent years to drive revenue growth. Despite implementing price hikes across more than 150 countries, the company has not seen a meaningful increase in customer churn. Last year, finance chief Christian Luiga said Spotify’s data showed strong user retention, underscoring the company’s focus on maintaining its existing subscriber base rather than aggressively pursuing new users at the expense of margins.
The company said the latest price adjustment is part of its ongoing efforts to continue delivering a high-quality user experience. Spotify indicated that the additional revenue will be reinvested into improving the platform, enhancing features, and supporting creators across its ecosystem.
Spotify’s Premium subscriber base rose 12 percent year on year to 281 million in the third quarter, highlighting sustained demand for its paid offerings. The platform reported 713 million monthly active users at the end of the quarter, reinforcing its position as the world’s largest audio streaming service.
Looking ahead, Spotify said its investment priorities remain focused on top-line growth, expanding user acquisition in emerging markets, and broadening its content portfolio. The company continues to diversify beyond music by adding more podcasts, videos, and audiobooks to keep users engaged and increase time spent on the platform.
Earlier this month, Spotify expanded its monetization program for creators and rolled out new tools designed specifically for video podcasters. These moves come as competition intensifies, with platforms such as YouTube and Netflix also vying for audience attention and creator partnerships.
Spotify has also made music videos available to Premium subscribers in the United States and Canada, signaling a stronger push into video content. The initiative is aimed at attracting more users while creating new opportunities for advertisers and creators, further strengthening Spotify’s multi-format content strategy.
