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Spotify is preparing another round of price hikes as it pours more money into new features and aims for an ambitious target of 1 billion users, according to the Financial Times. The company’s Co-President and Chief Business Officer, Alex Norström, said in an interview that the increases will be paired with fresh services designed to improve the overall experience on the platform.
This push comes at a time when the music streaming giant is trying to balance growth with profitability. Spotify, which already leads the global streaming market, has been under pressure to improve margins after years of heavy spending on podcasts, audiobooks, and technology upgrades. Price adjustments, Norström said, are a standard tool for the business and will be used “when it makes sense.”
The latest changes are set to roll out in September. In several markets, including South Asia, the Middle East, Africa, Europe, Latin America, and Asia-Pacific, the monthly cost of a premium individual plan will climb from €10.99 to €11.99, or about $14.05. While the increase may seem modest, it represents a steady shift for Spotify as it tests how much users are willing to pay in exchange for a richer set of features.
Analysts note that raising prices has become a common strategy across the streaming industry, as companies from Netflix to YouTube Premium look for ways to offset higher costs and deliver stronger earnings. For Spotify, however, the challenge is sharper. Music licensing fees remain high, competition from Apple Music, Amazon, and TikTok’s growing music service is intense, and profitability has often lagged behind its subscriber growth.
By tying higher prices to new services, Spotify is signaling that customers will see more than just an added charge. The company has already been testing AI-powered tools, smarter recommendations, and deeper personalization. It is also expanding into non-music content like podcasts and audiobooks, aiming to become a broader audio platform rather than just a music app.
Still, the success of this strategy depends on how listeners react. Some may be open to paying a little more if they feel they are getting extra value, while others could be tempted to switch to cheaper rivals. With over 600 million users today, Spotify’s long-term bet is that richer features and a more personalized experience will keep people engaged, and help it move closer to its billion-user dream.