This is its second U.S. increase in less than two years as the company leans on higher fees to protect profits.

The change applies to current users, with the new price kicking in on individual billing dates next month. 

Spotify said affected subscribers will be notified by email before the adjustment takes effect. New users are already being shown the updated price on the company’s website.

Investors welcomed this development as shares of the Swedish streaming group climbed almost 3% in premarket trading on Thursday, trusting that the company can push through higher prices without losing too many users.

This latest increase follows Spotify’s decision in June 2024 to lift the U.S. Premium price from $9.99 to $11.99, its first rise in more than a decade. The jump to $12.99 means American subscribers will have seen prices climb by 30% in roughly 18 months.

In a message sent to customers, Spotify explained the decision. “Occasional updates to pricing across our markets reflect the value that Spotify delivers, enabling us to continue offering the best possible experience and benefit artists.”

The company also told subscribers: “Thank you for being a valued Premium subscriber. Starting on your billing date in February, your subscription price will change from $11.99/month to $12.99/month.”

Spotify stressed that premium users who are unhappy with the new price can cancel at any time or switch to other plans available through their account settings, noting that the service stays optional.

The increase is not limited to the United States. Similar increases have been rolled out across parts of Europe, South Asia and Latin America over the past two years. This shows a similar global strategy rather than a one-off response to local conditions.

After years of losses, Spotify reported its first quarterly operating profit in late 2025. That achievement eased issues about the sustainability of its business model, but it also raised expectations. To keep that momentum, the company needs more revenue per user.

Music licensing is expensive, and costs continually increase as labels renegotiate deals. At the same time, Spotify is spending heavily to expand beyond music. 

Audiobooks are being rolled out more widely, and the platform is investing in new discovery tools and recommendation features designed to keep users engaged for longer.

Subscription fees are the most direct lever Spotify can pull. Advertising helps, but Premium subscriptions still account for the bulk of revenue. From that perspective, the latest increase looks less like a gamble and more like a necessity.

Spotify is not acting alone as Apple Music, YouTube Music and Amazon Music have all increased prices in recent years, softening the risk that users will defect purely on cost. 

For many listeners, the difference between services now comes down to habit, playlists and perceived value rather than price alone.

Still, there is little room for complacency. Consumers are facing higher prices across many digital services, and tolerance for repeated increases is not unlimited. We have seen subscription fatigue set in elsewhere, and music streaming may not be immune.

The post Spotify to Increase Premium Subscription Price to $12.99 Starting February appeared first on Tech | Business | Economy.

The monthly fee will move from €10.99 to €11.99 ($14.05), covering South Asia, the Middle East, Africa, Europe, Latin America, and Asia-Pacific.

The change comes less than two years after the company’s last increase. For Spotify, this is part of its goal to expand profitability and drive its initiative towards one billion global users. 

The Swedish streaming giant currently counts 696 million monthly active users and 276 million paying subscribers.

Alex Norström, co-president and chief business officer, told the Financial Times: “Price increases and price adjustments and so on, that’s part of our business toolbox and we’ll do it when it makes sense.”

Over the past year, Spotify has tightened operations, cutting costs through layoffs and scaling back on expensive podcast deals. Those decisions, alongside subscription growth, helped the company deliver its first annual profit in 2024 and record a 31.5% gross margin in the second quarter of 2025. Free cash flow now stands at €700 million, a turnaround after years of losses.

Alongside the price rise, Spotify is betting heavily on product innovation. Recent features include AI-powered playlist customisation, a virtual DJ tool, and audiobook integration. These are designed not just to improve listening but also to make users less likely to cancel, even when prices climb.

In Africa, Premium subscriptions will now cost R69.99 per month in South Africa, roughly on par with rivals Apple Music and YouTube Music. Analysts say this alignment in pricing shows Spotify’s intent to defend its market share, especially in mobile-first regions where streaming adoption is still rising quickly.

Spotify already controls about 65% of the global music streaming market and 45% of paid subscriptions outside China and Russia, according to Luminate. Analysts believe the new features and improved personalisation will help absorb the impact of higher costs for subscribers, ensuring Spotify maintains its lead as the dominant global music platform.

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