As Spotify rolls out new services, it signals further price increase

Spotify will reportedly raise prices as it invests in new features and targets 1 billion users. The price increase would be accompanied by planned new services and features. This was cited by the music streaming provider’s Co-President and Chief Business Officer Alex Norstrom in an interview to Financial Times.

The company is set to introduce a new ad-free option for existing users, which will likely come with a higher price tag. Spotify's premium subscription already offers features such as unlimited skips, offline listening, and ad-free listening. The exact price for the new ad-free option has not been disclosed yet, but it is expected to be higher than the current premium subscription price. This will be rolled out in the coming months.

 Spotify started raising prices only two years ago and the move was welcomed by investors keen for the company to focus on profitability after years of building subscriber numbers. Price increases and cost-cutting led to its first annual profit in 2024.

Earlier in August, the Swedish firm said it would increase the monthly price of its premium individual subscription in some markets from September, as it looks to improve profit margins. These markets included South Asia, the Middle East, Africa, Europe, Latin America and the Asia-Pacific region.