Spotify will increase subscription prices as the company invests in new features and aims to reach one billion users, according to the Financial Times, citing the music streaming platform’s co-president and chief business officer, Alex Norstrom, as saying in an interview.
The price changes will come with new services and features, though no further details were given, Reuters reported, adding that Spotify has yet to respond to their request for comment.
The move comes after the firm announced earlier this month that it would raise the monthly price of its premium individual subscription in some markets starting in September as part of its efforts to improve profit margins.
The monthly price will rise from 10.99 euros to 11.99 euros (S$16.51) in markets across Africa, Asia-Pacific, Europe, Latin America, South Asia, and the Middle East.
Mr Norstrom told the Financial Times that price increases and adjustments are part of Spotify’s “business toolbox” and would be made whenever “it makes sense”.
Price increases, alongside the recent year’s cost-cutting measures, helped the music streaming platform achieve its first annual profit last year. /TISG
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