If you’re a Spotify Premium user, you might soon have to pay a little more for your music fix. The streaming giant is planning to raise subscription prices in several regions as it pushes to grow its business and roll out new features.
According to a report by the Financial Times, Spotify’s Co-President and Chief Business Officer Alex Norstrom said the company is targeting one billion users and is investing heavily in new services. To support this, prices will be adjusted in multiple countries including those in South Asia, the Middle East, Africa, Europe, Latin America and the Asia-Pacific region.
Starting September, the cost of an individual Premium plan will go up from €10.99 to €11.99 (about $14.05). That’s roughly a one-euro increase, but multiplied across millions of subscribers, it will significantly boost Spotify’s earnings.
Norstrom explained that pricing changes are a regular part of the company’s strategy. “Price increases and adjustments are part of our business toolbox, and we’ll do it when it makes sense,” he said.
This isn’t the first time Spotify has raised prices. The company has been fine-tuning its pricing model while also cutting costs to become more profitable. In fact, these efforts helped Spotify report its first-ever annual profit last year — a big milestone for the Swedish firm, which has been in the red for much of its history.
While some users may grumble about the higher fee, Spotify is betting that people will stick around for its improved features and broader music experience. With a goal of reaching one billion users, the company clearly sees these price tweaks as a small but necessary step in its long-term growth.
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