Spotify's Strategic Move: Price Hike Amidst New Features and User Growth Goal

Spotify plans to increase its service prices as it aims to attract a billion users and introduce new features. Citing Co-President Alex Norstrom, the price hike targets profit margin improvement and accompanies new service offerings. The increase is evident in various markets globally starting September.

Devdiscourse News Desk | Updated: 24-08-2025 10:03 IST | Created: 24-08-2025 10:03 IST

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Spotify is set to raise its subscription prices as it invests in new features and sets a goal to reach 1 billion users, according to the Financial Times. This strategic move was reported by Spotify's Co-President and Chief Business Officer, Alex Norstrom. The company did not comment to Reuters on this development.

In August, Spotify announced an increase in the monthly price of its premium individual subscriptions in select markets starting from September. The new pricing structure aims to boost profit margins and will see prices rise to 11.99 euros from the previous 10.99 euros in regions including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific.

Co-President Alex Norstrom emphasized that price adjustments are a routine part of their business strategy, helping bolster the bottom line through recent cost-cutting measures. This approach has already enabled Spotify to achieve its first annual profit last year.