Spotify has announced a price increase for its monthly Premium subscription service to $12.99, up from the previous $11.99, in select markets including the United States, Estonia, and Latvia.
The change, effective on subscribers’ next billing dates starting in February 2026, marks the latest adjustment in the company’s ongoing efforts to align pricing with rising costs and investments in features.
Targeted Markets and Implementation Details
The hike affects the individual Premium plan in three countries: the US (Spotify’s largest market), and the Baltic nations of Estonia and Latvia. Existing subscribers will receive email notifications about the adjustment.
This follows a pattern of gradual increases in various regions, with the US seeing its third hike in recent years after adjustments in 2023 and 2024. The move does not currently impact other plan types like Family, Duo, or Student, though past rounds have occasionally extended to multi-user options.
Strategic Rationale and Market Response
Spotify’s decision comes amid pressure to boost profitability through higher average revenue per user, especially as the company invests in audiobooks, video podcasts, and premium features like AI playlists and lossless audio. Analysts note that previous price rises have shown limited churn, with subscriber growth remaining strong.
The announcement boosted Spotify’s shares nearly 3% in premarket trading on January 15, 2026, reflecting investor confidence in sustained monetization. While no explicit reasons were detailed in the announcement, the hike aligns with industry trends where streaming services adjust fees to offset licensing costs and inflation.
Spotify continues to emphasize value additions, positioning the increase as part of delivering enhanced listening experiences in mature markets.