Spotify scales back emerging markets pricing strategy, including South Africa

The company introduced a revised subscription structure in November 2025 that added a lower-tier Premium Lite option, increased prices for its standard Premium service and launched a higher-priced Premium Platinum package with added features including lossless audio and artificial intelligence tools.

However, six months later, Spotify has removed the Premium Lite offering in those markets and lowered Standard Premium pricing back to previous levels.

In India, where the adjustments are most visible, Standard Premium has dropped from ₹199 (about $1.44) to ₹139 per month, representing a reduction of just over 30%. The price now matches the former Lite tier. Student subscriptions have also fallen from ₹99 to ₹69 monthly, while Platinum remains unchanged at ₹299.

The move follows intense competition in one of the world's most price-sensitive streaming markets. At ₹199, Spotify's standard subscription had become more expensive than rival offerings, including Apple Music at ₹119 per month and YouTube Premium at ₹149, which combines ad-free video and music services.

Spotify has not formally announced the changes, with reports emerging through customer emails and local media coverage.

The pricing revisions appear to mark a shift from an earlier strategy aimed at increasing average revenue per user through greater subscription segmentation. Industry observers had viewed the November rollout as a test of whether users in emerging markets would accept higher-priced options and feature-based differentiation.

Investment bank Goldman Sachs had previously projected that emerging markets would account for as much as 75% of global streaming subscription growth by 2035, with India expected to play a major role in improving subscriber conversion and monetisation.

While Spotify has scaled back its mid-tier pricing strategy, the company has retained Premium Platinum across all five markets. In some territories, including Saudi Arabia, prices for the premium offering have increased. Spotify has also introduced a new Basic Platinum tier in selected markets.

The continued emphasis on premium subscription options suggests the company remains focused on attracting higher-spending customers despite reducing prices for mainstream plans.

Outside emerging markets, Spotify has taken a different approach. In Canada, the company has increased prices for most subscription packages, with Individual plans rising from C$12.69 (about $9.21) to C$13.99, Duo subscriptions increasing from C$17.89 to C$19.99 and Family plans climbing from C$20.99 to C$23.99. Student pricing remains unchanged.

The adjustments widen the price gap between Spotify and some competitors in Canada. Apple Music's subscription plans currently remain below equivalent Spotify offerings, with Spotify's Family package costing C$7 more per month.

The latest changes indicate Spotify is continuing to refine its pricing approach across markets, balancing subscriber growth ambitions with increasing pressure to improve revenues in an increasingly competitive global streaming sector.