Spotify Flags Price Rises as It Introduces New Services

Spotify will raise prices as it invests in new features and pursues its goal of reaching 1 billion users, the Financial Times reported, citing the company’s Co-President and Chief Business Officer Alex Norström, according to Reuters.

Spotify's monthly price will rise to €11.99 ($14.05) from €10.99 in markets including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region.  (Photo: Spotify)

The increases will be paired with new services and features, Norström said in an interview.

Earlier in August, the Swedish streaming firm announced it would raise the monthly price of its premium individual subscription in some markets starting September, as part of efforts to improve profit margins.

The price will rise to €11.99 ($14.05) from €10.99 in markets including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region.

“Price increases and price adjustments … that’s part of our business toolbox and we’ll do it when it makes sense,” Norström told the FT. Price hikes, combined with cost-cutting measures in recent years, helped Spotify achieve its first annual profit last year.