Spotify announced on Monday it will increase the monthly price of its Premium Individual plan in select markets, including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region. The subscription cost will rise from €10.99 to €11.99 ($13.86) starting September, as the streaming giant aims to improve profitability. The news sent Spotify’s shares soaring nearly 8%, adding to its 40% year-to-date growth.
The company attributed the price hike to its ongoing efforts to enhance margins, following previous increases and cost-cutting measures that helped Spotify achieve its first annual profit in 2024. Subscribers will receive email notifications about the change over the next month. Despite posting a Q2 loss due to higher payroll taxes, Spotify reported growth in monthly active users and Premium subscribers, though the tax burden impacted its Q3 profit forecast.
To diversify its offerings, Spotify has been expanding its video content library, including podcasts, through its Partner Program. CEO Daniel Ek noted a surge in creators joining the program, which provides monetization tools, leading to more video content on the platform. Additionally, Spotify is benefiting from Apple’s recent approval of its U.S. app update, which now displays subscription prices and external payment links—a move that avoids Apple’s commission fees.
Ek called the U.S. policy change a “very positive uptick” and expressed optimism that similar regulations in Europe and the UK could further benefit Spotify and other app developers. The price adjustment reflects Spotify’s strategy to balance user growth with profitability while navigating evolving digital market dynamics.
