Spotify Hikes Premium Plan Price Across US, Select Markets — SPOT Stock Rises Pre-Market

• The Swedish audio company had not hiked prices in the U.S. since 2024, when it had raised the Premium plan for individuals by $1.
• The family plan prices were hiked by $3, from $16.99 to $19.99.
• Post the latest price hike announced on Thursday, Spotify Premium Duo will cost $18.99, while Spotify Premium Family will cost $21.99 a month.

Spotify Technology SA (SPOT) on Thursday announced that it will hike prices of its premium subscription plans to $12.99 per month in select markets.

Over the next month, Spotify said that subscribers in the U.S., Estonia, and Latvia will receive an email stating that the premium subscription will cost $12.99 a month, up from $11.99 a month.

“Occasional updates to pricing across our markets reflect the value that Spotify delivers, enabling us to continue offering the best possible experience and benefit artists,” the company said.

Spotify shares were up more than 3% in Thursday’s pre-market trade. Retail sentiment on Stocktwits around the company was in the ‘neutral’ territory at the time of writing.

Spotify’s Price Hikes

Spotify has undertaken price hikes in other countries. In an announcement in August last year, Spotify hiked prices in multiple markets to €11.99 per month from €10.99. This Spotify price hike impacted users in parts of South Asia, the Middle East, Africa, Latin America, Europe, and the Asia-Pacific.

However, the Swedish audio company had not raised prices in the U.S. since 2024, when it had bumped the Premium plan for individuals by $1. The family plan prices were hiked by $3, from $16.99 to $19.99.

Post the latest price hike announced on Thursday, Spotify Premium Duo will cost $18.99, while Spotify Premium Family will cost $21.99 a month. The Duo plan supports two users, while the family plan can be used by six users.

Spotify’s Growing Pressures

Ahead of the price hike, analysts across firms trimmed their price targets for the SPOT stock, according to TheFly.

Analysts at Wells Fargo on Tuesday reduced their price target for Spotify to $710 from $750, citing slippages in the streaming giant’s recent offerings. The firm has an ‘Overweight’ rating on the stock.

Bernstein trimmed its price target for Spotify to $650 from $830, while keeping an ‘Outperform’ rating. However, the firm said that the launch of AI features will alleviate some pressure on Spotify in a space that is seeing an increase in traction among startups.

Oppenheimer also trimmed its price target for Spotify to $750 from $825, while keeping an ‘Outperform’ rating. The firm cited a reduced near-term outlook for Spotify as the reason for its price target cut.

€1 = $1.16

SPOT stock is down 9% year-to-date, but up 14% over the past 12 months.

Also See: Trump Envoy Says US, Greenland Likely To Reach Agreement As NATO Nations Deploy Following Tense White House Meeting: Report

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on