Spotify has confirmed another round of price hikes for its U.S. subscribers, raising the monthly fee for its Premium Individual plan by 8% to $12.99. This marks the company’s second increase in under two years, as it seeks to offset higher content licensing fees and broader inflationary pressures. Executives noted that the adjustment reflects growing investments in exclusive podcast content, AI-driven personalization features and expanded music catalog licensing agreements, which together account for nearly 30% of its operating costs.

Following the announcement, Spotify’s stock (SPOT) closed at $508.04, down 3.95% from the prior trading session, underperforming the broader market rally in which the S&P 500 gained 1.2% and the Nasdaq Composite rose 1.8%. Trading volume reached 1.4 million shares, 25% above its 30-day average, indicating elevated investor interest. Analysts at Horizon Capital cut their 12-month target by 5% to $550, citing concerns that repeated price increases could slow subscriber growth; however, they maintained a ‘neutral’ rating, highlighting Spotify’s leading market share of 32% in U.S. music streaming and its robust podcast advertising unit, which grew revenue by 35% year-over-year in Q4.