Spotify increased its subscription prices in the U.S. for the third time in as many years, raising the monthly fee from $11.99 to $12.99. The audio streaming giant notified its paid users via email, stating the new price would take effect with the next monthly billing cycle.

The company justified the price increase in a blog post, citing the need to reflect the value Spotify delivers and to continue providing the best possible experience while benefiting artists. Financial analysts at JPMorgan, as reported by the Financial Times in November 2025, predicted this price hike could boost Spotify's revenue by $500 million. Spotify previously raised prices in the U.S. in 2023, from $9.99 to $10.99 per month, followed by another $1 increase in June 2024 for its individual subscription plan.

This move follows similar price adjustments in other markets, including the UK and Switzerland, implemented last year. The U.S. price increase arrives as Spotify seeks to further monetize its extensive user base. According to the company's Q3 2025 results, Spotify boasts over 281 million paid subscribers globally, with 25 million located in North America.

Spotify's repeated price increases reflect the growing pressure on streaming services to achieve profitability amidst rising content costs and competition. The company's strategy hinges on balancing revenue growth with subscriber retention, a delicate act in a market where consumers have multiple streaming options.

Looking ahead, the impact of this latest price increase on subscriber growth and churn rate will be closely watched by industry analysts. Whether Spotify can successfully navigate the challenges of balancing profitability and user satisfaction will determine its long-term success in the increasingly competitive audio streaming landscape.