The 15.3 million Brits who pay for music streaming service Spotify are to see their subscription rise from £11.99 to £12.99 per month.
It comes just a year after the price was raised from £10.99.
Spotify only hit profitability in 2024 partly thanks to these fee hikes and cost-cutting efforts.
Alex Norström, the co-president and chief business officer at Spotify, stated in an interview with the Financial Times that price increases are “part of [Spotify’s] business toolbox and we’ll do it when it makes sense”.
He added that Spotify wanted to “keep adding value” to the service.
A range of new features have been added to the platform, from messaging to AI integration.
Spotify also announced it is working on its own AI tools in collaboration with major record labels.
Vinyl sales surge 54% on National Album Day
Although streaming services like Spotify and Apple Music account for the majority of money spent, physical vinyl sales continue to climb much faster, albeit from a lower base
The UK’s National Album Day, which took place this year on the 18th of October, is an annual celebration of ‘the art of the album’.
Re-releases of popular and classics albums to mark the occasion led to a 54% surge in vinyl sales during that week, and over 23% increase from the year before.
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Artists still struggling despite industry rebound
Music sales in the UK reached had already hit a record £2.4 billion in 2024, beating a 2001 peak of £2.2 billion at the height of the CD era.
The music industry hit a low point in 2014, capping just over £1 billion.
During this time, for the decade until 2023, Spotify’s subscription price had remained at £9.99.
Despite the price hikes and record revenues across the industry, musicians still say they are struggling as the money trickles its way down to them.
Almost half of working musical artists in the UK were earning less than £14,000 per year in 2023, a study by the Musicians’ Union found.
Only time will tell whether Spotify’s latest price increase will find its way into artists’ pockets.
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Newsjustnews writers 
Carmela Calling