What Spotify's latest subscription price increase means for users
Whether the price increase would mean new features or a better experience is uncertain.
It's the third time in just two years that Spotify has hiked its prices.
This time, it's doing it across several markets worldwide, including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific.
Subscribers in these regions will receive an email over the next month explaining what the price increase would be in their local currencies, while the monthly cost of a Premium individual subscription will rise from €10.99 to €11.99 in Europe, starting in September 2025.
Based on past changes, it's likely that country-specific adjustments will vary depending on local economies and exchange rates.
Why is Spotify increasing its pricing again?
The company says it’s part of an effort to “continue to innovate” and bring users the best possible experience. That may be true, but the timing suggests there might be more behind the decision. Just last week, the company reported its Q2 earnings, revealing it had added over 8 million new Premium subscribers, bringing its total to around 254 million. Despite that, Spotify still posted a loss for the quarter, largely due to higher employee-related taxes.
That mixed financial picture could explain the timing of this price increase. While Spotify hasn’t directly linked the hike to its recent earnings, the move could be an attempt to shore up margins ahead of the third quarter. After all, last year’s round of price increases, particularly in the U.S., helped the company report its first-ever annual profit in 2024. So it wouldn’t be surprising if they’re hoping for a similar outcome this time around.
CEO Daniel Ek admitted during the earnings call that he was “unhappy” with where things stand, but said he’s still confident in the company’s long-term vision. This price hike could be one way Spotify hopes to turn things around.
Emmanuel Oyedeji
How does Spotify's pricing compare with other music streaming platforms
Compared to rivals like Apple Music or YouTube Music, Spotify’s Premium tier has traditionally hovered around the same pricing, with all three sitting at about €10.99 for individual plans. But with this new hike, Spotify is placing itself just above the rest.
While this particular increase doesn't apply to U.S. users, it's part of a broader push to improve margins, and it comes just as Spotify gains more control over how it presents and sells subscriptions on platforms like iOS, following Apple’s approval of app updates that allow pricing visibility and external payment links.
What the price increase means for Spotify's subscribers
For users in the affected regions, it may be another reason to start thinking about downgrading, switching to a free ad-supported version, or cancelling the service entirely – even though it is just a €1 monthly increase.
Whether the price increase would mean new features or a better experience is uncertain. And while you may be frustrated or contemplating if the service is worth paying an additional €12 per year, similar price hikes in the past have not resulted in a major drop in subscriber numbers.
For what it is worth, the streaming platform's market dominance and unique content offerings could be its huge bet to keep subscribers from jumping ship.
Louis Eriakha
