Music streaming giant Spotify plans to raise its subscription prices in several markets as the company rolls out new features and aims to reach 1 billion users, according to the Financial Times.
Alex Norstrom, Spotify’s Co-President and Chief Business Officer, said the company will combine price increases with new services to improve user experience and grow its business.
“Price increases and price adjustments… that’s part of our business toolbox and we’ll do it when it makes sense,” he told the newspaper.
From September, the monthly price of Spotify’s Premium Individual subscription will rise in markets including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific region. The cost will increase from 10.99 euros ($12.86) to 11.99 euros ($14.05) per month.
Spotify has implemented similar pricing adjustments in the past and said the changes are part of its strategy to improve profit margins. Combined with cost-cutting efforts in recent years, these measures helped the company achieve its first annual profit last year.
Spotify did not immediately respond to a request for comment from Reuters.
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