Spotify Plans U.S. Price Hike in Early 2025, Could Generate $500M in Additional Revenue
Summary
Spotify prepares to raise U.S. subscription prices in early 2025, potentially generating $500 million in additional annual revenue as record labels push streaming platforms to increase fees that have lagged behind inflation compared to competitors like Netflix.
Key Points
- Spotify plans to raise subscription prices in the U.S. during the first quarter of next year, marking the first price increase since July 2024
- JPMorgan analysts estimate a $1 monthly price increase could boost Spotify's annual revenue by approximately $500 million, with current U.S. subscriptions costing $11.99 per month
- Major record labels pressure streaming platforms to raise prices, arguing current fees have not kept pace with inflation compared to services like Netflix