Spotify UK Price Hike Sparks Outrage, US Users Slam 'Greedy' Streaming Giant

The backlash was immediate and fierce. Just as millions of people are getting accustomed to the last price rise, another unwelcome email is landing in their inboxes. Spotify is hiking its UK subscription prices for the second time in a year, a move that will see its 15.3 million British subscribers paying £11.99 per month for an individual plan, up from £10.99.

This 8.3 per cent increase is not an isolated event. It is the latest signal of an aggressive new global strategy from the streaming giant, now firmly focused on boosting profitability.

While UK users face the immediate increase, analysts warn the United States is next, with a similar hike widely expected by early 2026. This prospect has already drawn criticism from US users online, who slammed the potential 'double increase' within such a short timeframe as 'greedy.'

The New UK Price Hike and What It Means for Spotify Users

Emails have begun circulating to UK subscribers, informing them that the price of a standard individual plan will rise by £1 per month. Users get a one-month grace period. This follows a similar increase in July 2024. The student subscription appears unaffected for now.

In a statement, Spotify said, 'As we continue innovating and enhancing the value we deliver, we periodically update our pricing to reflect local market conditions and economic factors.' However, many UK users took to social media to express frustration, questioning the 'enhanced value' and pointing to the timing just months after the previous hike.

This justification comes amid scrutiny of the company's finances. Despite laying off over 200 employees in 2024, pre-tax profits rose. Spotify has also implemented new age verification measures in the UK.

Analysts Warn a US Price Hike Is Next for Spotify

While UK customers face the immediate increase, analysts believe a price hike for US subscribers is imminent. Analysts at Morgan Stanley pointed to recent Australian price increases (14% for individual, 17% for family plans) as 'the beginning of a pricing cycle in '26'.

Analysts at J.P. Morgan agree, expecting a US increase 'by year end or early 2026'. This would be the third hike for US users in as many years. An individual plan, $9.99 for over a decade, rose to $10.99 in July 2023 and $11.99 in July 2024. Analysts predict a US increase could bring the individual plan to $12.99 or higher. A US hike could drive an additional $493 million in annual revenue.

The 'Value-to-Price' Strategy Driving Spotify

Spotify executives haven't explicitly confirmed the next US rise but tout their 'value-to-price' ratio. Co-president Alex Norström explained they add value (like audiobooks) then adjust the price 'when it makes sense'.

Analysts see this as key to profitability. Morgan Stanley analysts see 'significant margin potential still ahead.' This includes plans for new products like a 'superfan' tier. But for many users in the UK and US facing repeated increases, this strategy is increasingly viewed less as adding value and more as squeezing subscribers already dealing with rising living costs. The era of static, low-cost streaming appears over.