Why Spotify Premium could cost more in the future

We are expecting Spotify to raise their Premium plan cost soon. This comes right after the company launches new features on their app, designed to push it closer to 1 billion users.

Spotify already has over 600 million active users, including me, but growth is slowing. So to keep it growing it is adding AI-driven playlist tools, more audiobook content, exclusive shows, and even more features. Spotify says the extra revenue from higher prices will fund these new features.

Who will this affect? The exact price increase for Premium users has not been detailed, but we expect that the price will go up. Already from 2023 to 2024, Spotify increased their Premium plan about 20%. From $9.99 a month to $11.99. Families, students, and budget-conscious listeners could feel the impact the most from this new announcement. People may question if they’re even getting value from the price hike.

This comes amid an industry that’s rising prices. Netflix, Apple Music, YouTube Premium, and others have also raised their prices recently. The industry is shifting from user growth to profitability. Other competitors to Spotify may try to use Spotify’s higher prices, to their advantage, for getting new users.

Spotify is betting that users will stay loyal to the company, if the features are good enough. The big question on my mind is, will users pay more, or look for services elsewhere? Would you pay more for Spotify, or switch to a different service? Leave you answer in the comments.