If you are a subscriber, Spotify just hit your wallet again. The streaming giant raised Premium prices from $11.99 to $12.99 per month starting in February.

That makes it the most expensive major music platform in America.

The company announced the hike on Thursday (January 15). Shares immediately tanked 3.8% to $508.78. Investors weren’t feeling the move at all. This marks the fourth straight year Spotify raised prices. They went from $9.99 in 2022 to the prices announced today. That’s a 30% increase in four years.

Your streaming budget keeps getting crushed. The timing feels extra grimy.

Spotify’s dealing with major legal drama right now. A massive class action lawsuit from November 2025 accused the platform of allowing billions of fake streams. The suit specifically called out Drake for allegedly benefiting from fraudulent bot activity.

Rapper RBX filed that lawsuit, claiming Drake received 37 billion streams between January 2022 and September 2025. The suit alleges a significant portion was fake. That allegedly cost other artists hundreds of millions in royalties.

Drake himself got slammed with a separate RICO lawsuit in January 2026. The case accuses him of using gambling money from Stake casino to boost his streaming numbers. Prosecutors say he worked with streamer Adin Ross to pump fake plays through bot farms.

Both lawsuits paint a picture of streaming manipulation. Now Spotify wants more money even as fraud allegations swirl around its biggest artists.

The optics look terrible.

Co-founder Daniel Ek stepped down as CEO in January. New co-CEOs Gustav Söderström and Alex Norström took over. Their first major move? Jacking up prices during a legal crisis.

Spotify claims the increase helps them “keep delivering a great experience.” But users aren’t buying that excuse. The platform already generates billions, while artists receive pennies per stream.

Competitors such as Apple Music charge $10.99 per month. Amazon Music Unlimited costs $10.99, too. Spotify now leads at $12.99. They’re pricing themselves out of reach for many fans.

The company reported strong third-quarter earnings in November. But fourth-quarter revenue guidance disappointed analysts. Maybe that’s why they’re squeezing subscribers harder. Wall Street analysts believe price hikes could boost revenue as the streaming wars continue to intensify.

Netflix, Disney+ and other services all raised prices recently. Spotify’s following the same playbook. Squeeze customers until they break.

Users will get email notifications about the change over the next month. The new price takes effect with the February billing cycle. No escape from the increase, unless you cancel.

Social media exploded with angry reactions as news spread, with users threatening to cancel subscriptions and switch to cheaper alternatives.