Spotify (SPOT) will raise its U.S. subscription prices in the first quarter of 2026. The move, reported by the Financial Times, comes as the company aims to boost profits amid rising content costs and intense competition in the music streaming market.
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For investors, this could be an important move, as higher subscription fees may drive stronger profits, potentially impacting SPOT stock performance. Broadly, Wall Street analysts believe a U.S. price increase is crucial for Spotify’s long-term profitability and SPOT stock performance, making this move a closely watched catalyst.
Spotify to Raise US Fees Nearly Two Years Later
Spotify’s upcoming price adjustment will mark its first U.S. subscription increase since July 2024.
However, the company has already raised subscription rates in multiple global markets in recent months, including the U.K., Switzerland, and Australia. In August, the streaming giant confirmed that premium pricing would rise to €11.99 ($13.82) per month, up from €10.99, across regions such as South Asia, the Middle East, Africa, Europe, Latin America, and Asia-Pacific.
Currently, Spotify’s U.S. subscription costs $11.99 per month, compared with $9.99 at launch 14 years ago.
What the Price Hike Means for Spotify
The planned U.S. price increase comes as Spotify aims for more stable long-term profits. In recent years, the company has relied on subscription price increases to help boost earnings, betting that its strong market presence will keep users from leaving. So far, investor sentiment remains positive. Year-to-date, SPOT shares are up over 30%.
Notably, five-star-rated analyst Doug Anmuth at J.P. Morgan estimates that a $1 price increase in the U.S. could add roughly $500 million to Spotify’s annual revenue, underscoring how meaningful even a small adjustment could be for the company’s financials.
Meanwhile, the price hike also comes as major record labels have been pressuring Spotify, Apple (AAPL) Music, and other streaming platforms to raise subscription prices, arguing current fees haven’t kept pace with inflation and remain low compared to video streaming services like Netflix (NFLX).
Is Spotify a Good Stock to Buy?
According to TipRanks, Wall Street has a Moderate Buy consensus rating on SPOT stock, based on 19 Buys and seven Holds assigned over the last three months. The average Spotify stock price target of $780.56 implies a 33.43% upside potential.
