Spotify to Raise Prices as It Adds New Services

Spotify (SPOT, Financials) will raise prices as it rolls out new services and aims to reach 1 billion users, the Financial Times reported, citing company co-president Alex Norstrom.

The music streaming platform confirmed earlier this month that its premium individual plan will increase to 11.99 ($14.05) from 10.99 in markets across South Asia, the Middle East, Africa, Europe, Latin America and Asia-Pacific beginning in September.

Price increases and price adjustments that's part of our business toolbox and we'll do it when it makes sense, Norstrom told the newspaper. Spotify did not immediately respond to a Reuters request for comment.

The strategy marks another step in the company's effort to boost margins after years of heavy spending. Price adjustments combined with cost-cutting helped Spotify post its first annual profit in 2024.

The company is now pairing that profitability push with planned new features, though details of the services have not been disclosed. Executives say the combination of higher prices and expanded offerings is intended to scale Spotify toward a long-term goal of 1 billion users.