Spotify just announced another price hike. Here's what's really driving it

Pricing Changes - Spotify is implementing its third price increase for U.S. listeners since its launch in 2011, with previous increases occurring in 2023 and 2024, both being $1 hikes [1] - The company stated that it will "occasionally update its pricing" to continue investing in product features and enhance user experience [1] Market Position - Spotify has established itself as the dominant player in the streaming audio market, with over 713 million users and 281 million paid subscribers globally, an increase from 252 million in 2024 [3] - The competitive landscape includes Apple Music and Amazon Music, but Spotify maintains a significantly larger market share [3] Strategic Context - The rationale behind the price increase has not been extensively detailed by Spotify, but the company is in a markedly different position compared to its earlier competition with Pandora over a decade ago [2]