TL;DR

Spotify is applying an 8% increase to its US Premium monthly price, moving it from $11.99 to $12.99 effective on subscribers' February billing dates. The company framed the change as a pricing update to maintain service quality, and shares rose about 3% in premarket trading after the announcement.

What happened

After rolling out price hikes across many international markets late last year, Spotify has confirmed it will raise the monthly cost of its US Premium individual plan from $11.99 to $12.99. The company provided sample customer messaging stating the new amount will take effect on each subscriber's billing date in February and described the adjustment as an update to pricing intended to sustain the Premium experience. Earlier increases affected many regions — Spotify cited markets across South Asia, the Middle East, Africa, Europe, Latin America and the Asia-Pacific — and included examples such as the UK individual plan rising from £11.99 to £12.99. News of the US change coincided with a positive market reaction: Bloomberg reported Spotify shares climbed about 3% in premarket trading following the announcement. The company did not detail US changes to other plan types in the provided material.

Why it matters

  • Subscribers in the US will see a direct, recurring increase to their monthly cost for Spotify Premium.
  • The move aligns US pricing with increases already implemented in multiple international markets.
  • The stock market’s immediate, positive response suggests investors view the price change as potentially beneficial for Spotify’s revenue outlook.
  • How Spotify balances price rises with user retention will influence its competitive positioning in the streaming market.

Key facts

  • US individual Premium monthly price will move from $11.99 to $12.99.
  • The new price becomes effective on each subscriber’s billing date in February (as stated in Spotify’s sample customer message).
  • Spotify said it is updating pricing to keep delivering a ‘great experience’ (company wording paraphrased).
  • Earlier price increases were rolled out across many regions, including South Asia, the Middle East, Africa, Europe, Latin America and the Asia-Pacific.
  • The UK example cited: individual Premium rose from £11.99 to £12.99, and family plans moved from £19.99 to £21.99 in prior adjustments.
  • Bloomberg reported Spotify shares rose about 3% in premarket trading after the US pricing announcement.
  • The company provided sample text of the email customers will receive notifying them of the change.

What to watch next

  • Short-term share performance after markets open and any further investor commentary on the pricing move (confirmed: premarket jump of about 3%; longer-term movement not confirmed in the source).
  • Whether Spotify will announce corresponding changes for US family, student or bundled plans (not confirmed in the source).
  • Subscriber churn or complaints following the February billing-date changes (not confirmed in the source).

Quick glossary

  • Premium subscription: A paid tier of a streaming service that typically removes ads and adds features such as offline listening and higher-quality audio.
  • Billing date: The recurring calendar date on which a subscriber is charged for a service subscription.
  • Premarket trading: Stock trading activity that occurs before regular market hours, which can influence opening prices.
  • Churn: The rate at which customers cancel a subscription service over a given period.

Reader FAQ

How much will the US price increase be?
The monthly individual Premium price will rise from $11.99 to $12.99.

When does the price change take effect?
Spotify says the new price will apply starting on each subscriber’s billing date in February.

Will family, student or other US plans change price too?
Not confirmed in the source.

Why is Spotify raising prices?
Spotify stated it is updating pricing to continue delivering a strong Premium experience (company language paraphrased).

How did the market react?
Bloomberg reported Spotify shares rose about 3% in premarket trading after the announcement.

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