Spotify will raise its subscription prices in Jamaica and across the Caribbean this summer, part of a global push by the music streaming giant to prioritize profitability as its stock price continues to surge.
According to people familiar with the matter, the platform plans to increase the cost of individual subscriptions by the equivalent of €1 in dozens of countries across Europe, Latin America and the Caribbean as early as June. According to The Financial Times, Spotify will not raise prices in the US—its largest market—this summer, following a price hike there in July 2024. Spotify declined to comment on the changes.
The move reflects pressure from major music industry players who have long argued that streaming prices have lagged behind inflation and remain low compared to other entertainment platforms. “Even after recent price increases, a Spotify subscription in the US costs $11.99 a month, compared with $9.99 a month when the group launched in the country 14 years ago,” the Financial Times reported.
Spotify has already quietly raised prices in countries like the Netherlands and Luxembourg in recent weeks. According to one source, “the push would intensify considerably this summer.”
The price hikes come at a pivotal time, as growth in the global music business begins to slow. Last year, global revenue growth in the sector was cut in half, according to the IFPI trade group. In response, industry leaders are pushing what they’re calling “Streaming 2.0”—a new phase of streaming that emphasizes value, exclusivity, and premium offerings.
Universal Music Group chief executive Lucian Grainge introduced the phrase at a capital markets day in London last September. “The next phase of streaming, what I like to call streaming 2.0 . . . we believe that the value will grow enormously,” Grainge said, addressing investors from the iconic Abbey Road Studios.
Spotify is reportedly developing a “super-premium” tier that would cost an extra $6 on top of the standard $11 monthly fee in the US. This new level may offer early access to music and concert tickets. Other platforms—including Apple, Amazon, and YouTube—are also preparing similar premium versions of their services. But sources cautioned that these plans are still evolving.
Industry analysts are already weighing in on how listeners might respond to the shift. “Do people want something new?” said Midia analyst Mark Mulligan. “It’s almost like you need the stick element of super-premium. And the stick element is: if you want to hear the music first, you need super premium.”
Spotify’s stock has more than doubled in the past year, bolstered by both profitability and subscriber growth. The company is expected to report its latest earnings on Tuesday, which could give investors and the industry further insight into how this new pricing strategy is unfolding.
In February 2021, Spotify launched in 80 new countries, growing to 170 markets and reaching over 1 billion people.
