The report says Spotify will raise prices in the US in the first quarter of next year

Spotify plans to raise subscription prices in the US in the first quarter of next year, according to a new report from Spotify Financial Times. The move would mark the first price hike for the streaming service in the US since then July 2024. The company recently raised prices in several other countries, including the UK, Switzerland and Australia.

A Spotify subscription currently costs $11.99 per month in the US. When the service first launched in the country 14 years ago, it cost $9.99 per month.

JPMorgan analysts estimated that a $1 per month price increase in the US could increase Spotify’s annual revenue by about $500 million, the report says.

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.

This report comes a few weeks after Spotify announced that its founder, Daniel Ek, Steps down as CEO. The company will replace Ek with two co-CEOs: Gustav Soderström, current co-president and chief product and technology officer at Spotify, and Alex Norström, co-president and chief business officer.