Is Spotify’s 2026 Price Hike and Premium Video Push Reframing the Investment Case for SPOT?

• Spotify recently announced that it will raise U.S. subscription prices in the first quarter of 2026, while also rolling out premium-only music videos in the U.S. and Canada to more directly compete with YouTube.
• This combination of higher pricing and added video features highlights Spotify’s effort to increase what paying customers receive while testing how much flexibility it has on pricing.
• We’ll now examine how Spotify’s upcoming U.S. price increase shapes its investment narrative around user monetization and product expansion.

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Spotify Technology Investment Narrative Recap

To own Spotify today, you need to believe it can keep turning its large, culturally embedded user base into higher, more diversified revenue per user without losing engagement. The upcoming U.S. price hike and premium-only music videos may influence the near term catalyst around user monetization, but do not materially change the main risk, which remains high content and licensing costs that can restrict long term margin improvement.

The most relevant recent announcement here is Spotify’s plan to raise U.S. subscription prices in early 2026, its first increase since June 2024. Combined with premium-only music videos for U.S. and Canadian subscribers, this sits squarely within the existing catalyst of product expansion into podcasts, video and audiobooks, which is aimed at lifting average revenue per user and supporting operating leverage over time.

Yet even with these product upgrades, investors should be aware that rising licensing and content costs could still...

Read the full narrative on Spotify Technology (it's free!)

Spotify Technology's narrative projects €23.8 billion revenue and €3.4 billion earnings by 2028. This requires 12.8% yearly revenue growth and about a €2.6 billion earnings increase from €806.0 million today.

Uncover how Spotify Technology's forecasts yield a $748.60 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Twenty eight members of the Simply Wall St Community currently value Spotify between US$368 and US$914 per share, with estimates spread across this full range. Against this backdrop of differing views, Spotify’s push into premium video and higher pricing keeps the spotlight on whether product expansion can offset competitive pressure and structurally high content costs over time.

Explore 28 other fair value estimates on Spotify Technology - why the stock might be worth as much as 54% more than the current price!

Build Your Own Spotify Technology Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Spotify Technology research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Spotify Technology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Spotify Technology's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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