Spotify is hiking subscription prices because royalties are expensive as hell
The no. 1 streaming platform is cranking up subscription fees for the second time in a year. Users across five markets (including the UK and Australia) will reportedly pay up to $2 more a month after the hike goes into effect this month.
The US, Spotify’s biggest market, could also see hikes later this year but it’s yet to be determined how much. Rival Apple has also hiked prices for its music streaming service twice since 2022.
Spotify has a massive 236M subscribers, but the steamer rarely turns a profit since it pays about 70% of its sales in royalty fees. Last year, Spotify dished out a record $9B to the music industry. To help foot the bill, Spotify’s been expanding its non-music options: last year, it added audiobooks to its service for the first time and has spent billions bolstering its popular podcast biz.
