Spotify will raise subscription fees globally while launching new services, aiming to reach one billion users and improve profitability.
Spotify plans to increase subscription prices while introducing new services as part of efforts to expand its user base to one billion, the Financial Times reported, citing Co-President and Chief Business Officer Alex Norstrom.
The Swedish music streaming platform confirmed earlier this month that its premium individual plan will rise from €10.99 to €11.99 ($14.05) in several markets including South Asia, the Middle East, Africa, Europe, Latin America and the Asia-Pacific region, beginning in September.
“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 told the newspaper.
The move comes as Spotify invests in new features to boost revenue and profitability. A combination of higher subscription fees and cost-cutting measures helped the company post its first annual profit last year. Spotify did not immediately respond to Reuters’ request for comment.