Spotify may raise subscription prices following Apple’s lead

Apple Music recently raised its subscription cost—along with Apple TV+ and subscription bundle Apple One—giving Spotify some breathing room if the Swedish streaming service is motivated to hike its price.

An individual subscription to Apple Music will now cost $10.99 for a month—$1 more. Spotify premium subscription has stayed at $9.99 for more than ten years and following Apple Music’s suit, Daniel Ek, Spotify CEO, suggested a hike in subscription prices for US customers during the company’s earnings call on Tuesday.

Why the hike?
The Music Modernization Act passed this September requires streaming services to pay 15.35% of their music revenue to songwriters and publishing copyright holders from 2023-2027. Although it's only a 0.25% increase from the previous rate, it has significantly affected music streaming subscription charges.