Spotify raises prices as streaming costs pile up on Americans

Driving the news: The Swedish company said Thursday that prices will increase in the U.S., as well as in Estonia and Latvia.

• The company had already raised fees in some other countries last year, though it hadn't increased prices for Americans since 2024.

What they're saying: "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 in a statement.

Catch up quick: The streaming giant said that it has 700 million monthly active users and $675 million in operating income in its third-quarter earnings report last November.

• CEO Daniel Ek at the time said he expects further "revenue growth and profit expansion" in the future.

What we're watching: The company is scheduled to release fourth-quarter earnings in early February.

Zoom out: Streaming gained a foothold in the early 2010s because it was far less expensive — and far easier to sign up and cancel — than cable and satellite TV, but that's no longer the case, Axios' Tim Baysinger writes.

• That's forced streamers, which are increasingly focused on using live sports to attract new subscribers, to raise their prices.

By the numbers: According to the Bureau of Labor Statistics, "Subscription and rental of video and video games" like Netflix and Disney+ saw inflation of 19.5% in December.

• "Recorded music and music subscriptions" like Spotify and Apple Music rose as well, though by a lot less — by 1.1%.
• A November Forbes analysis found that the typical American spends $46 a month on streaming, with households having an average of three subscriptions.