Spotify has announced that it will raise the price of its monthly Premium subscription plan by $1, taking the cost to $12.99 in the United States, as well as in Estonia and Latvia. The Swedish music streaming platform said the revised pricing will come into effect on subscribers’ respective billing dates starting February, with users being informed about the change via email.

According to a Bloomberg report, the move is part of Spotify’s broader strategy of using price increases to drive revenue growth without significantly impacting its subscriber base. The company has repeatedly maintained that its pricing actions over the past few years have not resulted in any notable rise in customer churn, even after hikes across more than 150 countries.

Spotify has leaned on pricing power as it continues to expand its offerings and monetisation capabilities. Earlier this month, the company widened its monetisation programme for creators and rolled out new tools for video podcasters, stepping up competition in a crowded space where platforms such as YouTube and Netflix are also vying for audience attention. In addition, Spotify has made music videos available to premium users in the US and Canada, a move aimed at boosting engagement and attracting advertisers.

The company said the latest price revision reflects its ongoing efforts to “keep delivering a great experience,” indicating that the additional revenue will be reinvested into improving the platform and supporting creators. Investor sentiment appeared mildly positive, with Spotify shares rising nearly 1% in premarket trading following the announcement.

Spotify continues to show steady user growth. Premium subscribers increased 12 percent year-on-year to 281 million in the third quarter, while total monthly active users reached 713 million by the end of the period. The company has stated that its investment priorities remain focused on top-line growth, expanding its footprint in emerging markets, and broadening its content mix to include more podcasts, videos, and audiobooks.

With competition intensifying across the global streaming landscape, Spotify’s latest price hike underscores its confidence in the value of its platform and its ability to retain users while funding the next phase of product and content expansion.