Spotify Raises Prices for Premium Subscriptions in Multiple Regions
ByAinvest
Monday, Aug 4, 2025 10:21 am ET1min read
AAPL--
The company cited the need to improve profit margins as the primary reason for the increase. The price hike will take effect in September and will be communicated to subscribers via email over the next month. Spotify's shares rose more than 5% in premarket trading following the announcement, adding to a year-to-date gain of about 40% [2].
Spotify's decision to raise prices comes after the company forecasted its third-quarter profit to fall below analysts' estimates. Higher tax expenses related to employee salaries outweighed strong music streaming demand [3]. The company has been expanding its library of video content and podcasts to attract and retain subscribers, with a growing number of creators joining its partner program [4].
The price increase is expected to have minimal impact on subscriber churn, as Spotify has demonstrated minimal churn on past price hikes. The company's pricing power is supported by its strong user base and the continued demand for premium streaming services [2].
Spotify's latest move follows a pattern of price adjustments in various markets. Last year, the company raised its subscription prices in the US, with increases across all premium tiers. The most significant hike applied to the Family plan, which could make the service less competitive against rivals like Apple Music [4].
References:
[1] https://www.reuters.com/business/spotify-hike-premium-subscription-price-select-markets-september-2025-08-04/
[2] https://www.theverge.com/news/718038/spotify-premium-subscription-price-increase-outside-us
[3] https://www.investors.com/news/technology/spotify-stock-rises-music-streamer-raises-prices/
[4] https://timesofindia.indiatimes.com/technology/tech-news/spotify-is-increasing-its-subscription-price-in-these-regions/articleshow/123093037.cms
SPOT--
Spotify has announced a price hike for its premium subscription in several regions, increasing the monthly cost from €10.99 to €11.99. The change applies to users in the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region. This follows a similar price hike last year in the US and comes after Spotify missed revenue expectations in its recent earnings report. Despite the price increase, Spotify's shares rose 5% in pre-market trading.
Spotify has announced a price hike for its premium subscription, increasing the monthly cost from €10.99 to €11.99. The change applies to users in the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region. This follows a similar price hike last year in the US and comes after Spotify missed revenue expectations in its recent earnings report [1].The company cited the need to improve profit margins as the primary reason for the increase. The price hike will take effect in September and will be communicated to subscribers via email over the next month. Spotify's shares rose more than 5% in premarket trading following the announcement, adding to a year-to-date gain of about 40% [2].
Spotify's decision to raise prices comes after the company forecasted its third-quarter profit to fall below analysts' estimates. Higher tax expenses related to employee salaries outweighed strong music streaming demand [3]. The company has been expanding its library of video content and podcasts to attract and retain subscribers, with a growing number of creators joining its partner program [4].
The price increase is expected to have minimal impact on subscriber churn, as Spotify has demonstrated minimal churn on past price hikes. The company's pricing power is supported by its strong user base and the continued demand for premium streaming services [2].
Spotify's latest move follows a pattern of price adjustments in various markets. Last year, the company raised its subscription prices in the US, with increases across all premium tiers. The most significant hike applied to the Family plan, which could make the service less competitive against rivals like Apple Music [4].
References:
[1] https://www.reuters.com/business/spotify-hike-premium-subscription-price-select-markets-september-2025-08-04/
[2] https://www.theverge.com/news/718038/spotify-premium-subscription-price-increase-outside-us
[3] https://www.investors.com/news/technology/spotify-stock-rises-music-streamer-raises-prices/
[4] https://timesofindia.indiatimes.com/technology/tech-news/spotify-is-increasing-its-subscription-price-in-these-regions/articleshow/123093037.cms
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