Stockholm: Spotify has confirmed that subscription price hikes will continue to be a regular strategy as the company pushes toward profitability and expands its offerings.
Alex Norström, Spotify’s co-president and chief business officer, said price rises are now ‘part of our toolbox’ after years of keeping them flat. Norström stressed that these increases would come alongside added features and services, explaining, “essentially we want the consumer to win.”
Spotify first raised prices only two years ago, a move that reassured investors focused on profitability after years of user growth. That strategy, combined with cost-cutting, led to its first annual profit in 2024. Earlier this month, the company revealed that monthly premium subscription rates would rise again in some markets starting in September, news that lifted its share price nearly 10 percent.
“Price increases and price adjustments and so on, that’s part of our business toolbox and we’ll do it when it makes sense,” Norström said. Despite the hikes, he noted that people continued to subscribe, highlighting that Spotify was “grabbing more market share.” Currently, just “over 3 per cent of the world’s population are paying us on a recurring basis … I think there’s just so much more runway” to increase subscriber numbers.
Norström expressed confidence that Spotify could eventually surpass 1 billion users worldwide, “Over a quarter of a billion subscribers are currently paying us every month and just using us more and more. Are we for a billion? … I definitely think it’s not impossible at all. It’s certainly a goal.”
Spotify reported last month that subscriber numbers had grown 12 percent year-on-year to 276 million, while monthly active users rose 11 percent to 696 million, exceeding forecasts, even as the company swung to a net loss in the second quarter.
The company is simultaneously investing in features designed to boost engagement and loyalty. Users have created nearly 9 billion playlists, and Spotify has introduced new options to customise transitions between tracks.
It continues to expand in podcasts, audiobooks, and AI-driven tools, including an AI DJ. Norström described this expansion as ‘the ubiquity strategy of Spotify,’ saying AI would “allow you to create in a more interesting and lower friction way.” Meanwhile, Spotify has been developing a new ‘superfan’ subscription tier, reportedly priced at an extra $6 per month and aimed at dedicated music fans.
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