Key Facts
• August 24: Financial Times reported Spotify’s plan to raise subscription prices.
• Spotify aims to reach 1 billion users by investing in new features.
• Premium subscription prices to increase from €10.99 to €11.99 in select markets.
• Markets affected include South Asia, Middle East, Africa, Europe, Latin America, and Asia-Pacific.
• Alex Norström, Co-President and Chief Business Officer, confirmed the price hike in an interview.
• Spotify plans to introduce new services and features alongside the price adjustment.
• Recent price hikes and cost-cutting measures helped Spotify achieve its first annual profit last year.
• Spotify has not responded to Reuters’ request for comment.
Summary
Spotify, the Swedish music streaming giant, plans to raise subscription prices as part of its strategy to improve profit margins and invest in new features. According to the Financial Times, Co-President Alex Norström confirmed the price hike, which will see premium subscriptions increase from €10.99 to €11.99 in regions such as South Asia, the Middle East, Africa, Europe, Latin America, and Asia-Pacific. The company aims to reach 1 billion users by enhancing its services. Recent cost-cutting measures and price adjustments have already contributed to Spotify’s first annual profit last year. The company has not commented on the report.
