Spotify Plans Further Price Hikes Amid Expansion to One Billion Users

Spotify (SPOT) is set to implement additional subscription price increases as part of its strategy to achieve one billion global users and enhance profitability. The Financial Times reports that the streaming giant views periodic price adjustments as a Core component of its business model, following years of stagnant rates.

The company's co-president Alex Norstrom emphasized that price hikes will be accompanied by added value for subscribers. Recent feature rollouts include customizable track transitions, with more enhancements planned to improve platform engagement. This approach follows Spotify's first annual profit in 2024, achieved through previous price increases and cost-cutting measures.

Earlier in August, Spotify raised prices for its premium individual plan across multiple regions, including Europe, Asia-Pacific, and Latin America. The MOVE reflects the company's confidence in its value proposition despite growing competition in the streaming sector.