Spotify proves raising fees won’t stop listeners
Spotify’s latest results show that despite prices rising and costs climbing, users are not leaving.
The Swedish group added a record number of users in the final quarter of 2025, pushing monthly active users to 751 million and paid subscribers to 290 million.
Revenue rose 13 per cent year on year on a constant-currency basis to €4.5bn (£3.92bn), while operating income reached €701m.
The results come amid widespread price increases across streaming.
Spotify raised prices in around 150 markets during 2025, including the UK, and has announced further increases in the US from February 2026.
It has been estimated that the latest US hike alone could add around $1bn in annual revenue.
Crucially for investors, the music platform claims higher prices have so far had no material impact on churn, despite Spotify briefly becoming the most expensive major music streaming service in some markets.
But rivals seem to be following suit, with Amazon also announcing price rises to its music service, pointing to an industry-wide reset rather than a competitive risk users can easily avoid by switching.
Spotify absorbs costs
The pressure to lift prices is structural, with new “streaming 2.0” label agreements, which take effect from 2026, expected to push royalty costs up by around five to six per cent.
Spotify is passing those costs through, but the early data suggests subscribers are absorbing them.
Meanwhile, the group is working to reduce its reliance on standard music subscriptions.
Podcasts and audiobooks continue to grow, while advertising is expected to play a bigger role in 2026, even after a weak showing in ad revenue during the quarter.
Elsewhere, new label agreements will allow Spotify to launch a “superfan” add-on tier next year.
That tier could generate roughly £0.5bn in its first year, creating a higher-margin layer of monetisation on top of the base subscription.
Spotify is also positioning the business as a broader audio and media platform.
Founder Daniel Ek said the company is now a “technology platform for audio”,with future growth shaped by AI, new interfaces and new formats.