New York, Jan 15, 2026, 17:40 ET — Trading in the after-hours session.
- Spotify announced it will raise the U.S. Premium plan price by $1, moving it to $12.99 a month beginning in February.
- SPOT fell roughly 4% after hours, lagging behind the broader U.S. market rally.
- Investors are focused on subscriber churn and eagerly awaiting the next earnings report due Feb. 10.
Spotify Technology S.A. (SPOT) slid 3.9% to $508.04 in after-hours Thursday following the announcement that its monthly Premium plan price will jump $1 to $12.99 in the U.S. The hike also affects Estonia and Latvia, kicking in on users’ billing dates starting February. 1
Spotify’s growth hinges on just two paths now: boosting paying users or squeezing more value from each one. That $1 uptick is a straightforward test of its pricing power, with no fresh product launch to distract.
Investors are keeping an eye on churn — that’s the jargon for customers who drop out — since hiking prices can quickly backfire when competitors are just a tap away. Spotify has been pushing price increases more aggressively, prompting questions about how much room they have left to raise rates.
Spotify announced that Premium subscribers in the impacted regions will receive emails over the coming month detailing the update. The company described the adjustment as an “occasional” revision aimed at better reflecting the service’s value and backing both the listening experience and the artists. 2
U.S. subscribers are facing their third Spotify Premium price hike since 2023, following the previous increase in June 2024. The company is also raising rates for its Student, Duo, and Family plans across the country, The Verge reports.
Spotify reports 281 million subscribers and 713 million monthly active users worldwide, with its U.S. Premium segment still driving a disproportionate share of revenue amid expansion into podcasts and audiobooks. The platform now boasts over 100 million tracks, close to 7 million podcast titles, and 350,000 audiobooks available individually. 3
The stock has taken a hit, dropping roughly a third since its late-June peak near $776. Analysts have lowered their price targets after Spotify signaled a slowdown, projecting just 6% revenue growth for the fourth quarter when it reported earnings in November. 4
Oppenheimer analyst Jason Helfstein said Tuesday that price hikes might help steer the shares “back on track.” The firm lowered its price target to $750 from $825 but maintained an Outperform rating. 5
Spotify’s shares fell even as the wider U.S. market steadied, boosted by gains in chipmakers and big banks following strong earnings from Taiwan Semiconductor Manufacturing and U.S. financial firms. 6
The risk is clear: as prices climb, some users will shift to cheaper plans or switch to competitors like Apple Music and Amazon Music. Cancelations are likely to rise as households face growing streaming costs. The Labor Department’s inflation measure, which factors in subscription video services, jumped 19.5% in December, Axios reported. 7
On Feb. 10, Spotify is set to unveil its earnings before markets open. Investors will focus on any initial signs of cancellations following the price-change notifications, along with whether ad demand is showing growth or merely stabilizing. 8
