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Spotify is preparing to raise subscription prices while rolling out new services and features, as it aims to reach 1 billion users worldwide, according to a report by the Financial Times. The move reflects the company’s strategy to strengthen profit margins and expand its product offerings in a highly competitive music streaming market.

Price Adjustments Across Markets

The Swedish music streaming giant announced earlier in August that its premium individual subscription would rise in select regions starting in September. Prices will increase from €10.99 to €11.99 ($14.05) in markets across South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region.

Spotify Co-President and Chief Business Officer Alex Norstrom emphasized that price adjustments are part of the company’s “business toolbox” and are implemented when market conditions make sense.

“Price increases and price adjustments… that’s part of our business toolbox, and we’ll do it when it makes sense,” Norstrom said in an interview with the Financial Times.

Driving Growth Through New Features

The price hikes will coincide with Spotify’s launch of new services and features designed to enhance the user experience. While specific details remain limited, analysts anticipate expanded podcast offerings, interactive playlists, AI-driven recommendations, and enhanced social sharing tools as key areas of investment.

These initiatives are part of Spotify’s broader vision to transform from a music streaming platform into a comprehensive audio entertainment ecosystem, competing with rivals such as Apple Music, Amazon Music, and YouTube Music.

Profitability Milestones

Spotify has combined strategic price increases with cost-cutting measures over the past several years to improve its financial performance. These efforts helped the company achieve its first annual profit last year, a landmark milestone after nearly two decades of operation.

By improving margins while continuing to invest in new features, Spotify aims to balance growth with profitability, appealing to both subscribers and investors.

Strategic Outlook

Targeting 1 billion users represents a significant growth leap, considering Spotify had approximately 550 million active users and 210 million paid subscribers as of mid-2025. Expanding its subscription base while monetizing through higher prices and value-added services could drive long-term revenue growth and secure Spotify’s leadership in the global audio streaming industry.

With competition intensifying and users expecting constant innovation, Spotify’s approach underscores the challenges and opportunities of scaling a digital subscription business while maintaining profitability.

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