Spotify is planning to lift subscription costs within the U.S. within the first quarter of subsequent yr, in line with a brand new report from the Monetary Instances. The transfer will mark the streaming service’s first worth rise within the US since July 2024. The corporate not too long ago raised costs in a number of different international locations, together with the U.Ok., Switzerland, and Australia.
A Spotify subscription at the moment prices $11.99 a month within the U.S. When the service first launched within the nation 14 years in the past, it price $9.99 per 30 days.
The report says JPMorgan analysts have estimated {that a} $1-per-month worth improve within the U.S. may improve Spotify’s annual income by about $500 million.
Moreover, main file labels have been urging Spotify and different music streaming platforms to lift subscription costs, arguing that charges haven’t stored tempo with inflation and stay low when in comparison with providers like Netflix.
The report comes just a few weeks after Spotify introduced that its founder, Daniel Ek, is stepping down as CEO. The corporate is changing Ek with two co-CEOs: Gustav Söderström, the present co-president and chief product and expertise officer at Spotify, and Alex Norström, co-president and chief enterprise officer.
