Spotify to raise US prices in first quarter of next year, report says

In a move expected to impact millions of users, Spotify is gearing up to raise its subscription fees in the United States during the first quarter of 2024, as reported by the Financial Times. This will be the first price hike in the U.S. since July 2024, following recent increases across several international markets, including the U.K., Switzerland, and Australia. Currently, a Spotify subscription in the U.S. is priced at $11.99 per month. When the service made its debut in the country 14 years ago, the monthly fee was just $9.99. Analysts at JPMorgan estimate that a modest $1 increase in subscription fees could potentially boost Spotify’s annual revenue by approximately $500 million. The push for higher fees comes amidst pressure from major record labels, which have been advocating for price adjustments. They argue that music streaming fees have not kept pace with inflation and remain comparatively low when stacked against other streaming services like Netflix. This report follows the recent announcement that Spotify’s founder, Daniel Ek, will be stepping down as CEO. The company has appointed two co-CEOs to succeed him: Gustav Söderström, who is currently the co-president and chief product and technology officer, along with Alex Norström, the co-president and chief business officer.