Spotify ups U.S. Premium price by $1, posts Q3 revenue of $5.01B
Spotify will raise its U.S. Individual Premium monthly subscription from $11.99 to $12.99 next month, and hike Duo and Family plans by $1–$2. In Q3, the company beat estimates with $3.83 EPS on $5.01 billion revenue, up 7.1% year-over-year, while UBS, Barclays and others trimmed price targets to $700–$800.
1. Spotify Implements Broad U.S. Subscription Price Increase
In mid-January, Spotify announced a tiered price adjustment for its U.S. Premium plans. The Individual Premium plan will increase by $1 to $12.99 per month, the Duo plan will rise by $2 to $18.99 per month, the Family plan will climb by $2 to $21.99 per month for up to six accounts, and the Student plan will go up by $1 to $6.99 per month. This marks the first price change for Spotify Premium since June 2024 and follows similar moves by other major streaming services. Spotify’s decision is expected to boost annual subscription revenue by approximately 6%, based on its current U.S. Premium subscriber base of 88 million and the forecast that 70% of those users will renew at the new rates.
2. Institutional Investors Expand Holdings After Strong Q3 Performance
In the third quarter, Csenge Advisory Group increased its stake in Spotify by 277.8%, acquiring 2,317 additional shares to bring its total position to 3,151 shares, valued at $2.199 million as of the latest SEC filing. This follows a broader trend of institutional accumulation: Sound Income Strategies raised its position by 156.3% in Q2, Knuff & Co and Total Investment Management each initiated new positions in Q2 worth about $27,000–$29,000, and Heartwood Wealth Advisors added $27,000 in Q3. Overall, institutional ownership now accounts for 84.09% of outstanding Spotify shares. These moves come on the heels of Spotify’s November quarter beat, where the company reported $5.01 billion in revenue (7.1% year-over-year growth) and $3.83 in adjusted EPS, more than doubling consensus forecasts.