This new price hike might be the push you need to finally quit Spotify.
Spotify users across Europe and Latin America are about to find something new on their monthly bill — a higher price tag, but not much else. The streaming giant is hiking subscription fees yet again, without delivering any noticeable upgrades to the service.
As rumors of an even pricier Deluxe tier swirl, audiophiles are asking the obvious: when better-sounding options already exist, why keep paying more for the same old Spotify?
The Price Hike
Spotify is rolling out another round of price increases across Europe and Latin America this summer, following earlier adjustments in the Netherlands and Luxembourg.
- In the Netherlands, individual Premium subscriptions jumped 18%, from €10.99 to €12.99.
- Family plans rose 22% to €21.99, and Duo plans climbed 20% to €17.99.
- Belgium saw smaller hikes: 9% for individual plans and 17% for family.
New users get a three-month free trial, but long-time subscribers get a steeper bill with the same old service. Meanwhile, U.S. users are spared… for now.
Competitors have moved on. Tidal and Qobuz offer true high-resolution audio, while Apple Music includes lossless and Dolby Atmos sound — all for less or equal money.
Spotify says change is coming. During the July 2024 earnings call, CEO Daniel Ek confirmed a new Deluxe tier, expected to cost around $17–$18/month. It promises long-awaited HiFi audio, AI-powered playlists, headphone optimization, enhanced library tools, and audiobook hours. Ek called it “higher quality across the board” — but didn’t commit to a launch date.
After years of silence on HiFi, users have every right to ask: Is Deluxe a real upgrade — or just a pricey distraction?
The Business Behind Raising Prices
Spotify’s price hikes aim not only to boost margins but also to address a growing financial gap.
It also faces a challenge unique to music: the freemium model. Free users, who make up a huge chunk of Spotify’s base, generate far less revenue than Premium subscribers. That imbalance drags down Spotify’s earnings and leaves fewer resources for product improvements.
The numbers tell the story. Spotify earns about $0.089 for every hour of music streamed, while Netflix pulls in $0.207 per hour (more than twice as much) even though both platforms see around 190 billion user hours every year.
Still, the company has turned a corner.
CEO Daniel Ek has since sold about $778 million in company stock, signaling confidence in Spotify’s financial future.
But long-term growth may take more than price bumps. Spotify could eventually:
- Charge free users a small monthly fee, similar to Netflix’s ad-supported plan.
- Limit what free users can access, nudging them toward paid subscriptions.
- Raise Premium prices again, but only if big upgrades (HiFi audio) are included.
- Cap free listening hours each month, a move that could lift revenue but alienate loyal fans.
Spotify’s challenge is clear: find ways to earn more without losing the listeners who made it a giant in the first place.
Should You Stick Around or Switch?
If you’re paying more each month and still waiting for that long-promised upgrade, it might be time to look around. There are some pretty appealing alternatives already doing what Spotify still hasn’t.
- Tidal now offers lossless FLAC and HiRes FLAC audio, plus Dolby Atmos support — all rolled into one plan. Simple, high-quality, no tiers to untangle.
- Qobuz brings 24-bit FLAC streaming up to 192 kHz, with a huge library that leans heavily into audiophile territory.
- Apple Music includes lossless audio and Dolby Atmos spatial sound out of the box — no hidden fees, no extra steps.
Before switching, think through the basics:
- Will your gear make the difference noticeable? (If yes, go for it.)
- Do your devices support the format? (Check compatibility with phones, laptops, cars, and smart speakers.)
- Any student, family, or annual discounts? (Most platforms offer these.)
- Is there a free trial? (Usually, yes.)
To be fair, Spotify still excels in playlist curation and algorithm-driven discovery — an area where rivals struggle to compete. If that’s a major part of your experience, sticking with Premium might make sense.
But in terms of raw sound quality? Spotify’s competitors have clearly pulled ahead.
And with the Deluxe tier still in development, users are stuck waiting again. Some will hold out. Others are already packing their playlists.