Spotify $SPOT ( ▼ 3.95% ) is raising prices in the US again next month, marking its third subscription hike since 2023.
The Individual Premium plan is going from $12 to $13/month, while the Family plan jumps from $20 to $22/month. Spotify last raised prices in July 2024, and did another hike in 2023, as the streamer keeps testing how much pricing power it really has.
New CEOs, same old playbook
This is the first price increase under Spotify’s new co-CEOs Gustav Söderström and Alex Norström, who replaced Daniel Ek earlier this month.
Wall Street initially liked the move, with shares popping after the open, though the stock later slipped in early trading.
Spotify is leaning on paid subs, not ads
Spotify ended Q3 with 281 million paid subscribers, up 12% year over year. Meanwhile, its ad-supported revenue fell 5.5%, even though monthly active users grew 11%.
Translation: Spotify is still growing, but it’s making its money the old fashioned way.
By charging you more.