Spotify Tech has earned the title of most expensive music streaming platform on the market after announcing this week the price increase for your individual, duo, family and student plans. Given this, the Evercore ISI technology analyst Mark Mahaneyhas pointed out this as a opportunity to increase income during three fiscal quarters of 2026 according to Brian Sozzi en Yahoo Finance.
Spotify announced this week that it will raise the price of individual premium plans in the US from $11.99 to $12.99. He duo plan (for two people) will increase from 16.99 to 18.99 dollars per month. He plan familiar will rise from 19.99 to 21.99 dollars. Los plans for students will also increase from 5.99 to 6.99 dollars.
The price increases will be considerable, according to the figures analyzed by Mahaney.
Mahaney estimated an increase of between 4% and 5% on salesconsidering a $1 increase in individual and student plans, and a $2 increase in duo and family plans. Assuming the same gross margin profile as the current business, Mahaney calculated an approximate increase of $270 million in gross profits«most of which should impact operating income.»
Key model assumptions:
- 65 million subscribers in the US
- Approximately 45% of these 65 million have individual plans and 44% have duo/family plans.
In total, Mahaney calculated an estimate of 842 million euros (978 million dollars) in additional revenue from price increases during three quarters of fiscal year 2026.
«We continue to view Spotify as the global leader in audio streaming, with accelerated monetization, strong user growth and increasing profitability,» Mahaney added. Average revenue per user expansion is underway, supported by price increases in more than 150 markets and consistent retention, confirming Spotify’s pricing strength and low churn. We anticipate the full increase will extend into early 2026, along with the upcoming release of a plan Superfan/Premium+ higher priced.
Mahaney rated Spotify as «Outperform» with a target price of 750 dollarswhich represents an increase in 47% from current levels. Mahaney’s price target for Spotify puts it above average 730 dollars of their Wall Street peers, according to data from Yahoo Finance.
Spotify is no stranger to raising prices for its customers. Spotify last raised subscription prices for its US users in June 2024. This came after an increase in July 2023, which represented its first price increase since its US debut in 2011.
Curiously, after each announced price increase, Spotify shares moved sideways or slightly downward, due to Wall Street’s concern about the number of subscribers due to the increase in monthly fees. However, the stock stabilized and enjoyed strong bullish rallies as the effects of rising prices on revenue and profits became apparent to Wall Street, and users were not careless.
A Spotify Tech the 70 and 200 period moving averages remain above the price, RSI is down at 26 points and the MACD lines are below the zero level.
The price has barely broken the medium-term support at $505.48. Meanwhile, Ei indicators are mostly bearish.