Spotify is preparing to raise the cost of its U.S. subscription plans in the first quarter of next year, according to a report from the Financial Times.

The adjustment will be the streaming giant’s first American price increase since July 2024 and follows similar hikes already implemented in the U.K., Switzerland and Australia.

Currently, Spotify’s individual premium plan costs $11.99 per month in the United States — up from the original $9.99 monthly fee when the platform launched in the country 14 years ago.

Financial analysts at JPMorgan project that a $1 increase across U.S. subscriptions could boost Spotify’s annual revenue by nearly $500 million.

Meanwhile, major record labels have reportedly pressured streaming platforms to raise prices, arguing that subscription fees have lagged behind inflation and remain far lower than those of video-streaming competitors such as Netflix.

The pricing news comes shortly after a significant leadership shift at the company. Spotify founder Daniel Ek announced he will step down as CEO, with the company transitioning to a dual leadership structure.

Gustav Söderström — currently co-president and chief product and technology officer — and Alex Norström — co-president and chief business officer — will take over as co-chief executives.

Source: Techcrunch