Spotify Poised for First U.S. Price Hike in 18 Months, Analysts Project $500 Million Revenue Boost

Spotify is reportedly preparing to increase its subscription prices in the United States during the first quarter of 2026, marking the streaming giant's first price adjustment in its largest market since July 2024. This strategic move, initially reported by the Financial Times, is seen as a critical step towards demonstrating sustained profitability amid evolving market dynamics.

Industry analysts are closely watching the development, with JPMorgan estimating that a mere $1-per-month price increase in the U.S. could generate an additional $500 million in annual revenue for the company. This potential revenue boost is crucial as Spotify aims to improve its financial performance and satisfy investor expectations.

The reported price hike follows a series of increases implemented by Spotify in various other global markets throughout 2025, including Europe, Asia, and Australia. Major record labels have been actively advocating for streaming platforms like Spotify and Apple Music to raise their fees, arguing that current subscription prices have not kept pace with inflation and remain comparatively low when stacked against video streaming services such as Netflix.

Spotify's premium individual plan currently costs $11.99 per month in the U.S., a figure that has seen only a $2 increase since its launch 14 years ago. The company has historically leaned on price adjustments to drive earnings growth, banking on its widespread user base to maintain subscriber numbers despite higher costs.

The timing of this potential price increase also coincides with a significant leadership transition at Spotify, with founder and CEO Daniel Ek set to step down from his role on January 1, 2026, to become executive chair. Alex Norström and Gustav Söderström will take over as co-CEOs, inheriting the responsibility of navigating the company's financial strategies and market positioning.