Streaming services seem to constantly find new reasons to raise subscription prices. Users are hit with higher monthly fees, making it increasingly difficult to continue paying for all the platforms they love, and often leading many to cancel subscriptions just to make ends meet.
Now, another type of subscription price hike might be on the way.
Since its debut in 2008, Spotify has grown into the world’s most popular audio streaming service with over 713 million monthly active users and 281 million Premium subscribers.
That momentum isn’t slowing down anytime soon. In the third quarter of 2025, Spotify’s total revenue increased 12% year over year, driven by a 12% rise in subscribers and an 11% increase in monthly active users.
Spotify credits its continued growth to its recent subscription price increases and its constant launch of new, unique features that keep users engaged and willing to pay for Premium access.
Spotify increases subscription prices
While other streaming platforms have faced backlash for raising prices, Spotify’s growth remains steady, especially among Premium users worldwide. Like most of its rivals, Spotify offers a wider range of subscription tiers, such as free, ad-supported, and various Premium plans, making it accessible to a broader audience.
In August 2025, Spotify (SPOT) increased the price of its Premium Individual subscription by about €1 per month across Europe, Latin America, Africa, and the Asia-Pacific region, according to a company announcement.
“We’re increasing the price of Premium Individual so that we can continue to innovate on our product offerings and features, and bring you the best experience,” it explained.
The last time Spotify raised prices in the U.S. was in June 2024, when its Premium plans increased by $1 per month, following an increase the previous year. With Spotify forecasting a 32.9% gross margin for the fourth quarter of 2025, analysts expect another U.S. price hike soon.
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Financial institutions, including JPMorgan, Guggenheim, Canaccord, and BNP Paribas Exane, have maintained a positive outlook for Spotify, highlighting its ongoing subscriber and user growth, improved engagement and conversion, and ongoing international price increases, according to Simply Wall Street.
Citigroup Analyst Jason Bazinet said in a recent note that investors continue to expect a U.S price increase in the fourth quarter of 2025 or the first quarter of 2026.
“We saw continued growth across all regions, and users are spending more days and more hours on Spotify than ever before,” said Spotify CBO Alex Norström in an earnings call. “We also saw steady retention rates following the rollout of our recent price increases across more than 150 markets. These results show the power of the product and the loyalty of our subscribers.”
While Spotify didn’t provide specific dates for upcoming price hikes in the U.S., Norström said that price increases are part of the company’s strategy, which it plans to continue using, but in a thoughtful manner and at the right time, depending on the market.
“We are committed to pricing that reflects the value that we provide,” Norström added.
Image Source: Antoine Antoniol/Getty Images
2025 streaming subscription price increases
Other major streaming platforms have also raised prices in 2025.
- Netflix: +$1 to $2.50 depending on the monthly tier (January). Source:NPR.
- Discovery+: +$1 across all plans (January).
- Disney+: +$2 for ad-supported and +$3 for ad-free on monthly tiers (October). Source:Business Insider
- Hulu: +$2 to +$7 across various monthly tiers (October)
- Peacock: +$3 for monthly Premium ad-supported and ad-free (July). Source:Peacock
- Apple TV: +$3 for new monthly subscribers (August). Source:CNBC
Spotify launches new features to remain innovative
This fall, Spotify introduced more than 30 new features across entertainment, content sharing, and artificial intelligence (AI), all designed to enhance the user experience and boost engagement levels.
New Spotify features:
- Enhanced Free Experience
- Video Playback & Performance
- Queue on Free
- Mixing Tools
- Jam Updates
- Messages
- Age Assurance
- Lossless
- Spotify Car Integrations
- 3rd Party DJ
- TV Adoption/Paid Placements
- The Drop
- Apple TV
- Interactive DJ Updates
- Android OEMs
- Gemini, Meta Al Launches
- New User Home Screen Programming
- ChatGPT
- Audiobook Selects
- User Control X Playlists Updates
Spotify also struck a multi-year direct licensing deal with Universal Music Group earlier this year to develop new subscription tiers and deliver richer, more innovative content with enhanced audio and visuals.
Spotify bets on its ad business
Even as speculation swirls around an upcoming U.S. price hike, there might still be hope for another year break, as Spotify has been investing heavily in ad technology and automation tools.
The company recently launched Spotify Ad Exchange and Ads Management, along with new DSP partnerships with Amazon and Yahoo. These initiatives aim to expand advertiser access and enhance campaign performance by providing better targeting and analytics.
Since the Ad Exchange’s launch in April, advertisers using the platform have increased by 142%, web traffic campaigns saw 103% higher page views than brand awareness campaigns, and App Install campaigns achieved 4.3 times higher install rates compared to non-optimized ones, as noted by Spotify in a press release.
Spotify’s automated sales channel remains one of the key contributors to its overall advertising growth, and gross margin was primarily driven by its ad-supported segment.
These advancements highlight Spotify’s growing strength not just as a streaming platform but also as a powerful advertising ecosystem, which could save Spotify U.S. users from becoming another victim of price hikes, at least for now.
