Spotify is preparing to raise subscription prices in several markets as it expands its services and works towards its goal of reaching one billion users. The move was highlighted by the company’s Co-President and Chief Business Officer, Alex Norstrom, in an interview where he confirmed that the increases will be introduced alongside new features.
The music streaming platform has already announced that from September the price of its premium individual subscription will increase in certain regions. The monthly fee will rise from 10.99 euros to 11.99 euros, or 14.05 dollars, in areas including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia Pacific region.
“Price increases and price adjustments and so on, that’s part of our business toolbox and we’ll do it when it makes sense,” Norstrom said.
Spotify has not provided an official statement on the timing of the new features or the details of the planned services. However, the company has been steadily focusing on profitability after years of heavy spending on expansion. Earlier this month, Spotify confirmed that price adjustments in selected markets were part of its strategy to improve margins.
In recent years, Spotify has also taken significant steps to cut costs, which along with earlier price increases, helped the company achieve its first annual profit last year. Analysts say the latest adjustments reflect Spotify’s broader strategy to strengthen its position in the highly competitive global music streaming industry, where rivals are also looking at ways to improve profitability.
The planned services and features that will accompany the new subscription prices are expected to provide additional value for users, though exact details remain undisclosed.
Spotify currently has hundreds of millions of active users worldwide and continues to push for growth as it balances user acquisition with financial performance. The company views price adjustments as an essential part of sustaining this momentum while expanding its range of offerings.
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