Spotify raised Premium costs to $12.99, triggering backlash as lawsuits, management turmoil and fraud claims fueled anger amongst subscribers.

If you’re a subscriber, Spotify simply hit your pockets once more. The streaming big raised Premium costs from $11.99 to $12.99 per 30 days beginning in February.

That makes it the costliest main music platform in America.

The firm introduced the hike on Thursday (January 15). Shares instantly tanked 3.8% to $508.78. Investors weren’t feeling the transfer in any respect. This marks the fourth straight yr Spotify raised costs. They went from $9.99 in 2022 to the costs introduced as we speak. That’s a 30% enhance in 4 years.

Your streaming funds retains getting crushed. The timing feels additional dirty.

Spotify’s coping with main authorized drama proper now. A large class motion lawsuit from November 2025 accused the platform of permitting billions of pretend streams. The go well with particularly referred to as out Drake for allegedly benefiting from fraudulent bot exercise.

Rapper RBX filed that lawsuit, claiming Drake received 37 billion streams between January 2022 and September 2025. The go well with alleges a good portion was pretend. That allegedly value different artists lots of of thousands and thousands in royalties.

Drake himself received slammed with a separate RICO lawsuit in January 2026. The case accuses him of utilizing playing cash from Stake on line casino to spice up his streaming numbers. Prosecutors say he labored with streamer Adin Ross to pump pretend performs by way of bot farms.

Both lawsuits paint an image of streaming manipulation. Now Spotify needs extra money at the same time as fraud allegations swirl round its largest artists.

The optics look horrible.

Co-founder Daniel Ek stepped down as CEO in January. New co-CEOs Gustav Söderström and Alex Norström took over. Their first main transfer? Jacking up costs throughout a authorized disaster.

Spotify claims the increase helps them “keep delivering a great experience.” But customers aren’t shopping for that excuse. The platform already generates billions, whereas artists obtain pennies per stream.

Competitors reminiscent of Apple music cost $10.99 per 30 days. Amazon music Unlimited prices $10.99, too. Spotify now leads at $12.99. They’re pricing themselves out of attain for a lot of followers.

The firm reported sturdy third-quarter earnings in November. But fourth-quarter income steering disenchanted analysts. Maybe that’s why they’re squeezing subscribers tougher. Wall Street analysts imagine worth hikes may increase income because the streaming wars proceed to accentuate.

Netflix, Disney+ and different companies all raised costs just lately. Spotify’s following the identical playbook. Squeeze prospects till they break.

Users will get electronic mail notifications concerning the change over the following month. The new worth takes impact with the February billing cycle. No escape from the rise, until you cancel.

Social media exploded with indignant reactions as information unfold, with customers threatening to cancel subscriptions and change to cheaper options.

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