Spotify Will Raise U.S. Prices by Early 2026, Say Analysts

Brace yourself for different leap successful your monthly bills: Spotify is expected to rise its subscription prices successful the U.S. aboriginal adjacent year. According to aggregate equity analysts, the streaming institution is apt to instrumentality a terms hike by the archetypal 4th of 2026, continuing a inclination that’s changed what consumers wage to watercourse euphony and vastly improved the company’s bottommost line.  

In a Tuesday (Oct. 21) capitalist note, Morgan Stanley analysts pointed to Spotify’s terms increases successful Australia successful September arsenic “the opening of a pricing rhythm successful ’26” and a determination that “creates a template” for pricing successful different markets successful which Spotify bundles euphony and audiobooks. The terms summation successful Australia amounted to 14% for idiosyncratic plans and 17% for multi-person household plans.  

Likewise, analysts astatine J.P. Morgan expect a U.S. terms summation volition travel “by twelvemonth extremity oregon aboriginal 2026,” they wrote successful an Oct. 14 note. The analysts estimated that caller terms increases — which included Germany, Austria and Lichtenstein — correspond conscionable 25% to 30% of subscription gross and could relationship for incremental yearly gross of 380 cardinal euros ($441 million). A U.S. terms summation would beryllium adjacent much impactful, they added, driving 425 cardinal ($493 million) of yearly incremental revenue.  

Guggenheim expects a U.S. terms summation to beryllium announced by the extremity of the year, with the fiscal interaction hitting Spotify’s income connection successful aboriginal 2026, analysts wrote successful an Aug. 18 enactment to investors. The analysts judge that the latest circular of licensing agreements with grounds labels “included pending increases successful per-subscriber minimum fees,” which would pb to higher prices paid by subscribers. 

In the U.S., a Spotify idiosyncratic program was raised to $11.99 per month successful July 2024. The terms had gone unchanged since launching successful the U.S. successful 2011 until Spotify bumped the terms to $10.99 successful July 2023. The household program accrued from $15.99 to $16.99 successful 2023 and further roseate to $19.99 successful 2024.   

Spotify executives person not explicitly said they mean to further rise prices successful the coming months. Instead, absorption often talks astir the company’s efforts to marque Spotify a much invaluable experience, which gives it the quality to rise prices without losing subscriptions. This “value-to-price” ratio has go a cardinal metric that helps usher Spotify. As co-president Alex Norström explained during a May 1 net call, the institution “takes steps to equilibrium the value-to-price ratio,” adding worth and past adjusting the terms “when it makes consciousness for the market.”  

Raising prices has been instrumental successful helping Spotify go a much profitable company. Looking ahead, Morgan Stanley analysts judge Spotify is apt to execute 14% to 15% compound yearly gross maturation done 2028. Analysts Benjamin Swinburne and Cameron Mansson-Perrone “see important borderline imaginable inactive up arsenic the institution follows merchandise enhancements with terms increases and diversifies into higher borderline products” successful its subscription segment. Put different way, the analysts spot country for Spotify’s financials to amended arsenic it raises prices and adds further products specified arsenic a “superfan” tier connected apical of the modular subscription price.  

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