Spotify to Raise Prices Set to Introduce New Features Targeting 1 Billion Users

Spotify is reshaping its growth strategy with a bold mix of subscription price increases and new product innovations, aiming to balance profitability with long-term expansion. The world’s largest music streaming platform believes the combination could propel it toward a milestone of 1 billion users in the years ahead.

Alex Norström, co-president and chief business officer at Spotify, described price adjustments as a permanent part of the company’s strategy after more than a decade of avoiding them. “They’re in our toolbox now,” he explained, emphasizing that higher costs will be matched with enhanced features to ensure customers feel they are getting greater value.

A Shift Toward Profitability
Spotify only began raising prices in 2022, a move that investors widely welcomed. After years of prioritizing subscriber growth over financial returns, the company reported its first annual profit in 2024. This year, another round of increases is set to take effect in selected markets beginning in September—a decision that boosted shares by almost 10 percent when announced.

Despite rising subscription costs, Spotify insists user appetite remains strong. With just over 3 percent of the world’s population currently paying subscribers, Norström highlighted the vast potential for growth, calling it “runway” that could eventually push the company beyond the billion-user mark.

Growth Fueled by New Experiences
To keep users engaged, Spotify has been steadily expanding beyond music into podcasts, audiobooks, and AI-driven tools. The platform now boasts nearly 9 billion user-generated playlists, and its recent update allows listeners to personalize track transitions. Other innovations, such as its AI DJ, underscore a push toward what Norström calls “stickiness”—features designed to keep people deeply engaged in the platform.

One of the most anticipated projects is a “superfan” tier, reportedly under development, which would give die-hard music lovers exclusive benefits at a higher monthly cost. Industry insiders see it as a potential new growth driver for the music business, though Spotify has yet to provide details.

For Norström, Spotify’s future lies in ubiquity—being available on every device and woven into daily routines. By coupling a strategy of incremental price increases with constant innovation, the company is betting that consumers will not only stay but spend more.

“Over a quarter of a billion people already pay us every month,” he said. “The question is not if we can get to a billion—it’s when.”

Read More: Spotify signals further price rises as it rolls out new services

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