Spotify has announced that its premium subscription prices will rise for users in several markets across the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region. The changes will roll out over the next month.
According to the company, affected subscribers will receive an email notification detailing the increase. In Europe, for example, the monthly subscription cost will go from €10.99 to €11.99.
Following Similar Price Hikes in the U.S.
This is not the first time Spotify has adjusted its pricing. In 2024, the company raised premium subscription rates for U.S. users from $10.99 to $11.99. That increase marked the second price hike in the U.S. within a single year.
By expanding these adjustments to more regions, Spotify aims to bolster its revenue streams amid challenging financial results.
Price Hike Comes After Weak Earnings Report
The decision follows a disappointing earnings report last week, in which Spotify failed to meet revenue expectations. The shortfall caused the company’s stock to fall by 11%.
During an earnings call, Spotify CEO Daniel Ek admitted he was “unhappy with where [Spotify is] today,” but said he remained “confident in the ambitions we laid out for this business.”
Market Reaction to the Announcement
Interestingly, the market responded positively to the pricing news. Spotify’s shares rose 5% in premarket trading after the announcement, suggesting investor confidence in the company’s long-term growth strategy.
Key Takeaways
Market response: Shares up 5% in premarket
Regions impacted: Middle East, Africa, Europe, Latin America, Asia-Pacific
Europe price change: €10.99 → €11.99
Follows U.S. hike: $10.99 → $11.99 in 2024
Reason: Offset revenue decline after weak earnings report
