Spotify planning another price increase along with the introduction of new service offerings

In a significant move, music streaming giant Spotify has announced a price increase for its premium individual subscription in several markets, effective from September. The decision is part of the company's business strategy to improve its profit margins and invest in new features, as revealed by Alex Norstrom, co-president and chief business officer of Spotify.

According to the announcement, the monthly price for Spotify Premium individual subscriptions will rise by approximately 9%, increasing from €10.99 to €11.99. This change will affect markets such as South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region.

The new services and features that will accompany the price increase have not been fully disclosed, but Spotify's plans to raise prices have been reported by the Financial Times. No further details about these new offerings were provided in the report.

Norstrom emphasised that price increases are a part of Spotify's strategy and will be implemented when necessary. He also stated that this move is an investment in the company's future, aiming to provide a better user experience and help Spotify reach its goal of 1 billion users.

When reached for comment, Spotify did not immediately respond to a request for comment from Reuters.

This price increase comes after years of price increases and cost-cutting efforts, which have contributed to Spotify achieving its first annual profit last year. The company's efforts to improve its profit margins are a testament to its commitment to long-term growth and sustainability.

As Spotify continues to evolve and expand its offerings, users can expect more changes and improvements in the future. For now, the focus remains on delivering a superior music streaming experience while maintaining a healthy and sustainable business model.