CEO Daniel Ek emphasized the company's focus on retaining long-term subscribers rather than seeking immediate revenue increases, although the current price hikes may not directly align with this strategy.

The price hikes are viewed as a strategy to enhance revenue streams while balancing subscriber growth with profitability goals, receiving positive reactions from investors.

Spotify has announced a price increase for its Premium Individual subscription to 11.99 euros ($13.87), effective September 2025, impacting markets outside the U.S., including regions like South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific.

Subscribers will soon receive notifications regarding the new pricing changes.

Following this announcement, Spotify's stock surged over 6% on the New York Stock Exchange, trading around $667 per share, helping to recover losses from a disappointing Q2 earnings report.

This price adjustment is part of Spotify's broader strategy to improve profit margins, a trend that has been ongoing for several years.

Spotify's executives argue that these price increases are essential for funding platform improvements and enhancing user experience, including advancements in audio quality and personalized playlists.

With 696 million total users, Spotify maintains its position as the leader in the music streaming market, with 276 million paying subscribers.

While U.S. subscribers will not see a price increase at this time, Spotify is reportedly developing a new 'super-premium' subscription tier for the U.S. market, which may cost around $6 more than the standard Premium plan.

The decision to raise prices reflects broader trends in the streaming industry, as companies like Netflix and Disney+ have also adjusted their pricing structures to balance subscriber growth with revenue needs.

Music industry insiders have been advocating for price increases, arguing that Spotify's pricing policy has negatively impacted artists and record labels' earnings.

Historically, Spotify has maintained stable subscription prices for an extended period while growing its customer base, making these recent adjustments significant.