By Morten Suhr Hansen
Last week, Spotify welcomed its customers back from summer holidays with an announcement of price increases across a wide range of markets outside the US and Canada. Already last year, prices in those regions went up from $10.99 to $11.99, and now the rest of the world is following suit.
On average, prices are increasing by around 9% across markets. In the EU, the monthly fee rises from €10.99 to €11.99, which in Denmark means an increase from DKK 109 to DKK 119.
It’s estimated that Spotify has about 180 million paying subscribers outside the US and Canada, meaning this “small adjustment” translates into an additional annual revenue of a staggering DKK 16 billion.
Unsurprisingly, the news was warmly welcomed by investors: Spotify’s stock price jumped 6% immediately following the announcement. It underscores how the company has been on a positive trajectory in recent years – both in terms of business development and market performance.
It’s hardly a surprise that consumers are regularly hit by price increases on the products and services they subscribe to. But Spotify’s move still made me reflect: are we in fact witnessing a kind of “subscription inflation”? A situation where more and more subscription businesses are leaning on price hikes – perhaps to compensate for slowing subscriber growth.
Subscription inflation hits home – at least for me
Speaking as a private consumer, I’d say there’s definitely something to it. With more than 50 active subscriptions in my household, I have a solid empirical basis for comparison. And I can confirm that, during 2025, I’ve faced multiple price increases across services. Not just in line with the current inflation rate of around 2%, but significantly higher.
This applies not only to my many media and streaming subscriptions, but also to retail, culture, entertainment, and even physical product subscriptions.
Has it made me consider cancelling a subscription or two? In some cases, yes. But what ultimately matters, of course, is whether the value I get still outweighs the cost.
And let me stress: I have absolutely nothing against price increases per se. They are a vital tool for any subscription business and a precondition for continuously developing services and delivering even better customer experiences. In fact, we often help our clients analyze and implement optimal pricing strategies, including how to manage increases most effectively.
So, using Spotify’s approach as inspiration, here are my recommendations for how you can tackle the tricky issue of pricing and price adjustments.
What can we learn from Spotify’s pricing strategy?
Here are some key takeaways from Spotify’s approach, and measures you might consider in your own pricing strategy:
- Communicate clearly in advance. Spotify sends emails and other notifications to all affected subscribers with details and dates for upcoming price changes. Make sure you do the same.
- Offer alternative plans. Spotify has long been rumored to be working on a cheaper, stripped-down version without audiobooks, as well as a premium “super package” with additional features. Consider whether new bundles could accompany new prices.
- Add more value. Spotify emphasizes that higher prices make it possible to deliver more value through new features and better experiences. Think about whether your price increases can be linked to a tangible improvement in subscriber value.
- Base decisions on market analysis. Historical data shows Spotify has low churn—even during price hikes. Make sure you understand your own price elasticity and model the impact of increases on your key business metrics.
- Consider discounts for families and students. Spotify offers both Duo and Family plans as alternatives to the standard subscription (and Viaplay recently launched a student option). Similar packages might help retain subscribers with special needs or tighter budgets.
Naturally, I recognize that Spotify is a special case. It’s one of the subscription companies with the highest levels of loyalty among its users. But that makes it all the more important for every subscription business to maintain a steady hand on the wheel when it comes to pricing and adjustments.
Are you, as a subscriber, noticing more price increases lately? Or are you, as a subscription business, considering raising prices? I’d love to hear your reflections.
