Spotify is planning to raise subscription prices in the US in the first quarter of next year, according to a new report from financial TimesThe move will mark the streaming service’s first price increase in the US July 2024The company has recently increased prices in several other countries including the UK, Switzerland and Australia,
Spotify subscription currently costs $11.99 per month in the US, compared to $9.99 per month when the service first launched in the country 14 years ago.
JPMorgan analysts have estimated that a $1 per month price increase in the US could increase Spotify’s annual revenue by about $500 million, the report said.
Additionally, major record labels are urging Spotify and other music streaming platforms to raise subscription prices, arguing that fees have not kept pace with inflation and remain low compared to services like Netflix.
The report comes just weeks after Spotify announced that its founder, Daniel Ek, CEO is stepping downThe company is replacing one with two co-CEOs: Gustav Söderström, Spotify’s current co-president and chief product and technology officer, and Alex Norström, co-president and chief business officer,
