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Spotify will raise its subscription prices in dozens of countries around the world this summer, according to people familiar with the matter, as the music streaming leader prioritises profitability amid a soaring stock price.
The group was planning to raise prices by the equivalent of €1 on individual subscriptions in countries across Europe and Latin America as early as June, these people said.
Spotify would not raise prices in the US, its largest market, this summer, the people said. The streaming service increased its monthly price in the country in July 2024. Spotify declined to comment.
Music industry executives have long lobbied Spotify, Apple Music and other streaming platforms to raise their prices, saying they have risen more slowly than inflation and the service is cheap compared to video streaming subscriptions such as Netflix. Even after recent price increases, a Spotify subscription in the US costs $11.99 a month, compared with $9.99 a month when the group launched in the country 14 years ago.
Spotify has already quietly begun raising prices in some countries, such as the Netherlands and Luxembourg, in recent weeks. The push would intensify considerably this summer, said a person familiar with the matter.
The move comes as a decade of fast expansion in the music business begins to slow, with global revenue growth in the sector halving last year, according to the IFPI trade group.
As the big music companies search for a fresh leg of growth, they have been touting “Streaming 2.0”: the next phase of music streaming, which would include pricier premium versions of their services.
Streaming groups including Spotify were considering charging extra money for early access to music, according to several people familiar with the discussions, as the music industry looks to cash in on the most passionate fans of beloved artists.
They were also considering offering early access to concert tickets to those who pay for the super-premium tier, these people said.
Spotify is eyeing a “super-premium” tier that would cost an extra $6, on top of the $11 a month fee in the US, the FT has reported.
These premium subscriptions would be different across the major platforms, according to several executives who are involved in these discussions. Apple, Amazon and YouTube are also preparing premium versions of their music streaming services.
However, these people cautioned that plans could change.
Universal Music Group chief executive Lucian Grainge introduced the term “streaming 2.0” at a capital markets day in September. “The next phase of streaming, what I like to call streaming 2.0 . . . we believe that the value will grow enormously”, Grainge told a room of investors at the Abbey Road studio in London.
Observers have questioned how consumers will react to paying more, after enjoying access to all the world’s music for about $10 a month over the past decade.
“Do people want something new?” said Midia analyst Mark Mulligan. “It’s almost like you need the stick element of super-premium. And the stick element is: if you want to hear the music first, you need super premium.”
Spotify’s stock has more than doubled in the past year as the group has delivered both profits and subscriber growth. The company is set to report earnings on Tuesday.
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