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As $10 Subscriptions Fade, Spotify Explores New Pricing in LatAm and Europe

Credit: Patrik Ragnarsson (edited)

Key Points

  • Spotify reportedly plans to raise subscription prices for individual plans in Europe and Latin America.
  • The company is testing a "Basic" plan in the Netherlands, allowing users to avoid price hikes by sacrificing audiobook access.
  • Price adjustments are driven by pressure from music rightsholders and industry executives to align costs with inflation and value delivered.

The long-stable economics of music streaming are shifting as platforms face pressure to prove their value beyond just vast catalogs. Spotify is now making calculated moves internationally, testing just how much users will pay as the era of the static subscription fades further into the past.

Spotify makes its move: The streaming giant is reportedly planning to increase subscription prices across dozens of countries in Europe and Latin America this summer, potentially as early as June. The expected increase is around the equivalent of €1 per month (just over $1 USD) for individual plans, though the company is holding off on hikes in the US for now, following its last price adjustment there in July 2024.

Broader strategy: This planned international rollout isn't happening in a vacuum. Spotify has already begun implementing increases, notably announcing specific hikes in the Netherlands set to take effect May 1, 2025. Dutch users face increases ranging from €1 for Student plans to €4 for Family plans. Recent, quieter price adjustments have also been noted in Luxembourg, further indicating the strategy is actively underway.

Testing user tolerance: In the Netherlands, Spotify is also piloting a potential future for streaming tiers by offering existing Premium subscribers a way to sidestep the increase. Users can switch—just once—to a new "Basic" plan that maintains the old price point but sacrifices access to audiobooks. This move forces users to weigh the value of specific features against cost, effectively testing price elasticity and allowing Spotify to defend its Premium pricing.

Industry reacts to cost pressures: These price adjustments come amid significant pressure from music rightsholders, and industry executives, who have long argued that streaming subscription costs haven't kept pace with inflation or the value delivered, especially compared to video services. With overall music industry revenue growth slowing last year, the push towards what some call "Streaming 2.0"—potentially involving premium tiers for early access or other benefits—is intensifying. As the market leader with 263 million paid users at the end of 2024, Spotify's pricing decisions carry significant weight and could pave the way for competitors to follow suit.