Spotify raises prices – in the USA

Spotify raises prices in the US, its largest market, in July. The New York-listed Spotify stock jumps 5% in pre-market trading on Wall Street after the announcement.

» Updated:

» Published:

Spotify raises prices – in the USA
Photo: Terje Pedersen NTB/TT

Share this article

Spotify raises prices in the US, its largest market, in July. The New York-listed Spotify stock rises 5% in pre-market trading on Wall Street following the announcement.

With a price increase of 9% in July, the premium subscription will cost $11.99 (approximately 126 Swedish kronor per month), according to Spotify in a press release.

According to Bloomberg Intelligence – part of the news agency Bloomberg – the price increase could contribute to a $400 million (approximately 4.2 billion Swedish kronor) increase in Spotify's revenues in the second half of 2024. This makes the market's average forecast of an annual revenue of $17 billion seem low.

Analysts at Key Banc Capital Markets estimate that the price increase will lift the company's revenues by around 3-4% over the next 12 months and that it is too small to have a significant negative impact on Spotify's positive customer flow. Spotify's customers are known to be significantly more loyal than those of other streaming companies.

Spotify justifies the price increase by wanting to invest in and develop the product offering to be able to offer the best experience for customers.

The price increase will be the second in the US within a year and follows Apple and Amazon, which have also raised prices for similar services.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Government Boosts Support for Sweden's Regional Airports

Government Boosts Support for Sweden's Regional Airports

Klarna CEO: Embracing "Swedishness" as a Key Asset

Klarna CEO: Embracing "Swedishness" as a Key Asset

Handelsbanken Swish Payment Disruption Resolved

Handelsbanken Swish Payment Disruption Resolved

Government Proposes Increased Export Credit Guarantees for Swedish Companies

Government Proposes Increased Export Credit Guarantees for Swedish Companies

AstraZeneca Halts UK Research Facility Expansion Plans

AstraZeneca Halts UK Research Facility Expansion Plans

Princess Madeleine's Skincare Brand Launch Draws Lukewarm Interest

Princess Madeleine's Skincare Brand Launch Draws Lukewarm Interest

Länsförsäkringar Swish Payment Issue Resolved

Länsförsäkringar Swish Payment Issue Resolved

Blind Box Trend Raises Concerns Over Consumer Behavior and Spending

Blind Box Trend Raises Concerns Over Consumer Behavior and Spending

France's Credit Rating Downgraded by Fitch

France's Credit Rating Downgraded by Fitch

Microsoft Gains Amid Mixed US Market

Microsoft Gains Amid Mixed US Market

FTC Investigates Google and Amazon Over Advertising Practices

FTC Investigates Google and Amazon Over Advertising Practices

US Proposes G7 Tariffs on China and India Over Russian Oil Purchases

US Proposes G7 Tariffs on China and India Over Russian Oil Purchases

Taco Bell Plans Expansion into Sweden with First Stockholm Location

Taco Bell Plans Expansion into Sweden with First Stockholm Location

Russia's Central Bank Makes Smaller Than Expected Interest Rate Cut

Russia's Central Bank Makes Smaller Than Expected Interest Rate Cut

ECB Officials Divided on Future Interest Rate Decisions

ECB Officials Divided on Future Interest Rate Decisions

Klarna CEO Secures Billion-Kronor Loan to Buy Out Co-Owner

Klarna CEO Secures Billion-Kronor Loan to Buy Out Co-Owner

Six Suspects in Consultant Scandal Face Charges After Spain Raid

Six Suspects in Consultant Scandal Face Charges After Spain Raid

Microsoft to Remove Teams from Office Package in EU Agreement

Microsoft to Remove Teams from Office Package in EU Agreement

UK Economy Growth Stagnant in July as GDP Remains Unchanged

UK Economy Growth Stagnant in July as GDP Remains Unchanged

German Inflation Rises to 2.2 Percent in August

German Inflation Rises to 2.2 Percent in August