Spotify is once again imposing a fee hike globally. From September 2025, the Music Streaming Corporation will increase the monthly price of its Premium Individual plan from €10.99 to €11.99 in most markets outside the U.S. including Europe; Latin America and Africa; the Middle East; Asia; and South Asia. In the coming weeks, subscribers will receive emails with a little bit of information about their region.
At first glance, this may seem like a minor modification—just one euro more per month. Considering that Spotify has over 239 million Premium subscribers, the math changes. Although only half of the users are located in the affected regions, this single modification could result in an extra annual revenue of €100 million or more.
This is not Spotify’s first time increasing prices. The third round of price hikes in as many years reveals a deeper problem than inflation or currency fluctuations. It’s about survival. Spotify is still finding it difficult to do math behind the scenes. Despite steady user growth, the company’s net loss for Q2 2025, was €86 million. The cost of staying competitive and relevant increased alongside an increase in revenue.
Spotify’s leadership asserts that the price hike will enable the company to invest in product features and innovation, and they have recently introduced several changes, including AI-powered DJ experiences, podcast playlists, real-time lyrics, smart shuffle, or music with a regional focus. These advancements demand persistent investment in both technology and talent. But the bigger question is: do users actually feel these upgrades are worth paying more for?
Considering my daily use of Spotify and frequent writing about digital platforms, I’ve been keeping an eye on the development of streaming services. It is apparent that Spotify is attempting to transform itself from a music app to encompassing the entire audio realm. And they’re spending money on special podcasts, improving AI functionality and new features like interactive playlists. Despite being interesting, many of the new features on Spotify have not significantly altered the way people use it. A lot of users still consider music as their ultimate benefit, without the need for advertisements.
To sum up, a €1 increase is not insignificant in many impoverished nations. In places like Nigeria—where Spotify only launched in 2021—the platform has been gaining ground, but the economy is in a different place. Exchange rates fluctuate wildly. Disposable income is low. For a Nigerian user already paying roughly ₦1,100–₦1,300 per month, this increase could push the price above ₦1,500. For someone from North America or Europe, it may not seem like much, but for someone in Nigeria, that is the same as having lunch. In case the platform doesn’t seem to offer more value, a lot of users may opt for the free plan or switch.
This price war is not exclusive to Spotify. In the past year, Apple Music, YouTube Music and Amazon Music have all raised their prices to match. The increase in content licensing costs, inflation, and the desire to generate profits for shareholders are contributing to this trend. But Spotify’s position is unique. It’s a company that is entirely focused on streaming, unlike Apple and Amazon. It doesn’t have iPhones or e-commerce to fall back on. This makes it far more dependent on balancing subscription pricing with user loyalty.
Also, there is the issue of perception. Premium users are paying to experience better experiences, not just to get rid of ads. Spotify may create the impression that it is charging more for services if they don’t include clear new features or performance enhancements in their new €11.99 plan. This is a competitive market, and that mindset plays.
I understand the position of Spotify at the same time. Managing a global music platform is an expensive endeavor. The amount of content licensing in each country, regulatory changes, and custom features for different markets all add up quickly. They seem to be able to keep on growing, while exploring new audio formats, creating original podcasts, and improving AI capabilities. It’s an impressive feat. However, it is evident that the company is entering a new phase where profit will be prioritized over product.
This change means that Spotify users will soon be paying more, regardless of whether they acknowledge it or not. But the company is hoping that the majority of users will be willing to pay a premium for the convenience and familiarity of the platform. The gamble’s success hinges on how users react in the months after the increase.
For now, the streaming fee is set at this rate for 2025. Spotify is aware that the golden age of ultra-cheap, ad-free music on demand may be over. Whether the experience they offer is still worth the price is another matter to consider.’
