Spotify (NYSE: SPOT) is set to raise prices for its Premium Individual plans in a wide range of countries starting September 2025. The Swedish streaming company confirmed the monthly rate will go from $13.86 (€11.99) per month, up from the previous $12.70 (€10.99). This change is coming to several regions including Europe, South Asia, the Middle East, Africa, Latin America, and other Asia-Pacific territories, but users in the U.S. are not included in this round of hikes.
Subscribers living in the affected regions will soon receive email notifications outlining what the new bills will look like and when the higher rate will take effect for their account. The company said the adjustment will create “headroom for continued investment in innovation and content,” though the real reason is simpler: profitability. Spotify, after years at the forefront of music streaming, is still searching for the best way to consistently turn a profit. Despite substantial growth in both paid subscriptions and revenue, rising costs tied to employee compensation and taxes have put a damper on the company’s bottom line.
Spotify last raised prices across many markets in mid-2023 and is now following up, as global streaming competition intensifies. When asked recently why pricing changes haven’t been more frequent over the years, CEO Daniel Ek explained that Spotify has been more focused on long-term subscriber growth and sustained relationships with users than squeezing out revenue at every opportunity. Still, operational costs and new taxes are nudging the company into action now, even as demand for streaming remains strong and Spotify continues to attract more paying users and monthly listeners.
The announcement comes just a few days after Spotify posted disappointing earnings, with profits falling short of analyst expectations despite a double-digit increase in both subscribers and total revenue. The company is cutting costs elsewhere, by reducing headcount and scaling back investments in podcasts, but it’s clear price bumps are going to be part of the routine for international markets as the economics of streaming evolve. Notably, since early 2025, Spotify stock has surged over 40 percent, suggesting investors are supportive of price tweaks as part of a broader push to make the business more sustainable.
For listeners outside the U.S., the change means paying more for uninterrupted, ad-free music and exclusive content. Whether users will swallow the increase or start eyeing competitors remains to be seen, but Spotify’s move sends a message: the days of rock-bottom streaming rates in international markets are probably behind us.
