Spotify Confirms First Global Price Increase Since 2024, Users to Add More Than $1 Monthly

Spotify is raising the cost of its premium subscriptions for the first time in the United States since June 2024. Also known as 'streaming inflation', Spotify joins other platforms in increasing rates per year.

The Swedish streaming giant confirmed that the individual plan will increase by £1 ($1.15) per month, while the duo and family plans will rise by £1.73 ($2) and £2.60 ($3), respectively. Meanwhile, the student plan will remain at £4.89 ($5.99) monthly.

Existing subscribers will be notified via email. Music platforms explained that price changes aim to fund new features and improve the listening experience of users.

Why Spotify Is Raising Prices

Regular price increase keeps Spotify on top in terms of revenue. But compared to other competitors, its strong position in the market is what keeps subscribers loyal. To keep loyal users from coming back, the platform invests heavily on new features, said CEO Daniel EK.

In 2024, the company raised prices in several regions, including Europe, Asia-Pacific, and Latin America. The individual plan went up from £9.52 ($11) to £10.33 ($12).

It was the time AI features, like AI-powered playlist and podcast wrapped, were being introduced.

The company is basically saying that meeting user demand and adding new features requires higher subscription fees.

Analysts point out that this trend is seen across the industry. Streaming services have raised fees more often over the past year. This partly reflects inflation and partly covers the costs of licensing music and expanding content. According to Reuters, when one major service raises prices, others often follow, creating a chain reaction across the industry.

What Spotify Subscribers Can Expect

New Spotify users will immediately feel the price hike, but existing subscribers will be informed in the coming weeks.

The individual plan will increase by £1.10 ($1) per month to £10.39 ($11.99). The duo plan will rise by £2.00 ($2) to £14.72 ($16.99), and the family plan will go up by £2.68 ($3) to £17.31 ($19.99). The student plan, available at a discount for verified students, will stay at £5.19 ($5.99).

By keeping the student plan unchanged, Spotify seems to focus on attracting younger users, who are more sensitive to price but important for future growth.

Rising Streaming Prices: Should Users Be Concerned?

Spotify's announcement is not an unusual hike in its subscription plans; it's an industry pattern for all streaming platforms.

Both video and audio streaming services have raised their prices to deal with higher licensing costs and operating expenses in the past two years. Even Netflix and Disney+ have adjusted their subscription fees multiple times since 2023.

However, the consistent yearly price hikes in 2024 and early 2025 indicate that the company is becoming more aggressive in its pricing strategy. Social media critics pointed out that earlier increases usually occurred every two to three years.

Subscribers may see smaller, step-by-step increases rather than one big jump at first. Analysts believe this lessens the impact of price hikes, but with millions of users, it's a revenue growth for streaming giants.

With that, Spotify users will feel a slight rise in monthly costs this year. Next year, experts warn to embrace for additional hikes. For families or duo plan subscribers, the extra expense could reach £31.20 ($36) annually for a family plan

Much to the dismay of unsubscribed users, Spotify continues to gain new subscribers, with hundreds of millions of paying users around the world.