Spotify Technology SA (NYSE:SPOT) announced on Thursday it will raise the price of its individual Premium subscription service in the United States, Estonia, and Latvia.
The monthly fee for existing subscribers will climb from $11.99 to $12.99, marking the company’s third price adjustment in its largest market since 2023.
The price hike, which represents an increase of approximately 8.3%, comes as the streaming giant transitions from a period of aggressive user acquisition to a focus on margin expansion and long-term profitability.
In a company statement, Spotify noted that the updates across these markets "reflect the value Spotify delivers" and will support continued investment in the user experience and benefits for artists.
Current subscribers in the affected regions will receive email notifications over the coming month detailing when the new pricing will take effect for their specific billing cycles.
New subscribers will see the updated $12.99 rate immediately upon sign-up.
The decision follows a series of product enhancements, including the recent rollout of high-fidelity lossless audio and the introduction of premium-only music videos in North America.
Analysts from JPMorgan previously estimated that a $1 monthly increase in the U.S. alone could generate an additional $500 million in annual revenue for the company.
The move also aligns Spotify more closely with the pricing of competitors who have been under pressure from major record labels to increase the "per-stream" value of music.
While Apple Music and YouTube Music have historically trailed Spotify's pricing in certain tiers, the industry at large has seen a steady upward trend in subscription costs as platforms bundle more non-music content like podcasts and audiobooks.