Music streaming giant Spotify is set to raise its subscription prices as part of a broader strategy to invest in new services and features, according to a report by the Financial Times. The company’s Co-President and Chief Business Officer, Alex Norström, stated that these changes are aimed at supporting Spotify’s ambitious goal of reaching one billion users worldwide. The planned price adjustments are intended to help fund innovation while improving the platform’s offerings.
The price increase follows an announcement made by Spotify in early August, confirming that it would raise the cost of its premium individual plan in several markets starting in September. The monthly subscription will increase from €10.99 to €11.99 in regions including Europe, South Asia, the Middle East, Africa, Latin America, and the Asia-Pacific. Norström emphasized that such adjustments are a standard part of the company’s business strategy, noting, “Price increases and price adjustments and so on, that’s part of our business toolbox and we’ll do it when it makes sense.”
This move is consistent with Spotify’s recent efforts to boost profitability. In recent years, the company has combined price hikes with cost-cutting measures, a approach that helped it achieve its first annual profit last year. The additional revenue generated from these increases will enable further investment in new tools and enhancements designed to attract and retain a larger user base.
Spotify has not yet provided additional comments in response to requests from Reuters. As the streaming market becomes increasingly competitive, the company’s focus remains on expanding its global reach while continuing to innovate and improve its service offerings for users around the world.
