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Spotify Raises U.S. Premium Price to $12.99 as Shares Slip

Spotify says the higher fee reflects the service's value to fund improvements for users, benefiting artists.

Overview

  • The individual Premium plan in the United States increases from $11.99 to $12.99 with February billing, with users notified by email and a company blog post.
  • Price increases were also announced for Estonia and Latvia starting in the same billing cycle.
  • Spotify shares fell roughly 3% on January 15 trading after the announcement, with an earlier intraday drop near 4%.
  • Previous analysis cited by the Financial Times projected a U.S. price hike could add about $500 million in revenue.
  • The decision follows a leadership transition as cofounder Daniel Ek stepped down and Gustav Söderström and Alex Norström took over as co-CEOs.