Spotify to increase prices yet again, users beware of another financial squeeze on the horizon
Starting September 2025, Spotify is increasing the monthly cost of its Premium memberships in several regions, such as the UK, mainland Europe, South Asia, the Middle East, Africa, Latin America, and Asia-Pacific. The price hike does not affect the US and Canada, where prices were adjusted earlier in the year.
The new prices for Premium Individual memberships in the UK will be £12.99 per month, an increase of £1 from the current £10.99. This equates to an additional £12 per year. The exact amounts and locations of the price increases vary by region.
Spotify has not specified the reasons for the price increase, but the company had to pay more tax on employees' salaries, resulting in a loss during the third financial quarter. It is also worth noting that Apple and Amazon offer higher quality audio than Spotify, which has yet to launch its long-touted Hi-Fi tier.
In response to the price increase, other streaming services like YouTube Music Premium, Apple Music, and Amazon Music Premium (for Prime members) are likely to follow suit. This trend is common in markets where one firm's price rises tend to be followed by the rest.
Subscribers affected by the price hike will receive email notifications in the weeks leading up to the September billing cycle, and the new prices will apply automatically unless subscriptions are cancelled. Spotify continues to innovate its product offerings as part of its broader strategy to improve operating margins.
The price increase for Spotify's Premium Individual membership in the UK is due to the company's higher tax payments on employees' salaries, impacting its financial performance. With Spotify's price rise, other streaming services like YouTube Music Premium, Apple Music, and Amazon Music Premium (for Prime members) may also adjust their pricing, influenced by the market trend.
