Spotify raised Premium costs to $12.99, triggering backlash as lawsuits, management turmoil and fraud claims fueled anger amongst subscribers.
If you’re a subscriber, Spotify simply hit your pockets once more. The streaming large raised Premium costs from $11.99 to $12.99 per thirty days beginning in February.
That makes it the costliest main music platform in America.
The corporate introduced the hike on Thursday (January 15). Shares instantly tanked 3.8% to $508.78. Traders weren’t feeling the transfer in any respect. This marks the fourth straight yr Spotify raised costs. They went from $9.99 in 2022 to the costs introduced at the moment. That’s a 30% improve in 4 years.
Your streaming funds retains getting crushed. The timing feels further dirty.
Spotify’s coping with main authorized drama proper now. An enormous class motion lawsuit from November 2025 accused the platform of permitting billions of pretend streams. The go well with particularly referred to as out Drake for allegedly benefiting from fraudulent bot exercise.
Rapper RBX filed that lawsuit, claiming Drake obtained 37 billion streams between January 2022 and September 2025. The go well with alleges a good portion was faux. That allegedly price different artists a whole lot of hundreds of thousands in royalties.
Drake himself obtained slammed with a separate RICO lawsuit in January 2026. The case accuses him of utilizing playing cash from Stake on line casino to spice up his streaming numbers. Prosecutors say he labored with streamer Adin Ross to pump faux performs by bot farms.
Each lawsuits paint an image of streaming manipulation. Now Spotify desires more cash whilst fraud allegations swirl round its greatest artists.
The optics look horrible.
Co-founder Daniel Ek stepped down as CEO in January. New co-CEOs Gustav Söderström and Alex Norström took over. Their first main transfer? Jacking up costs throughout a authorized disaster.
Spotify claims the rise helps them “preserve delivering an excellent expertise.” However customers aren’t shopping for that excuse. The platform already generates billions, whereas artists obtain pennies per stream.
Opponents reminiscent of Apple Music cost $10.99 per thirty days. Amazon Music Limitless prices $10.99, too. Spotify now leads at $12.99. They’re pricing themselves out of attain for a lot of followers.
The corporate reported sturdy third-quarter earnings in November. However fourth-quarter income steering upset analysts. Perhaps that’s why they’re squeezing subscribers more durable. Wall Avenue analysts imagine value hikes might enhance income because the streaming wars proceed to accentuate.
Netflix, Disney+ and different companies all raised costs lately. Spotify’s following the identical playbook. Squeeze prospects till they break.
Customers will get e-mail notifications concerning the change over the following month. The brand new value takes impact with the February billing cycle. No escape from the rise, except you cancel.
Social media exploded with offended reactions as information unfold, with customers threatening to cancel subscriptions and change to cheaper options.
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