As streaming services continue to increase in price, it’s not surprising that Spotify is planning another price hike. What’s interesting is that this comes after the recent introduction of lossless audio.
According to the Financial Times, Spotify is set to raise subscription prices in the first quarter of 2026 in several countries, including its largest market, the US.
The exact amount of the price increase is still unknown, but analysts believe it is crucial for Spotify to raise prices in the US to prove its profitability. The last major price increase for Spotify occurred in mid-2024, starting in the UK, Australia, and Pakistan before reaching the US.
As licensing costs for music increase, streaming platforms like Spotify are faced with the choice of absorbing the costs or passing them on to subscribers. The major record labels have been pushing for higher fees from streaming platforms, arguing that prices have not kept up with inflation.
Apple Music also raised its prices in 2022, making Spotify the more affordable option for a short period before Spotify followed suit. The introduction of lossless audio may have contributed to Spotify’s cost increase, as the company initially planned to offer it as a premium tier before competitors like Apple and Amazon offered it for free.
Despite the challenges, Spotify eventually launched its lossless audio feature at no extra cost. The company had considered introducing a premium “Music Pro” service to justify higher prices for lossless audio, showing its efforts to differentiate itself in the market.
While another price hike may be tough for customers, it’s important to note that both Spotify and Apple Music maintained their $9.99 price for several years before recent increases. The pressure from music labels to align prices with more expensive video streaming services like Netflix could lead to further price hikes in the future.
