Spotify will raise prices as it invests in new features and targets a billion users, the Financial Times reported on Sunday, citing the music streaming provider’s co-president and chief business officer, Alex Norstrom.

The increases would be accompanied by planned new services and features, the FT cited Norstrom as saying in an interview.

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.

It said the price will rise to €11.99 from €10.99 in markets including South Asia, the Middle East, Africa, Europe, Latin America and the Asia-Pacific region.

Prices were also increased in South Africa, with Spotify Premium now costs R69.99/month — R5 above its previous increase (to R64.99/month), which it announced in October 2023.

The new R69.99/month price put Spotify on par with other streaming music services available locally, including Apple Music (R69.99) and YouTube Music (R64.99).

A Premium Family account in South Africa also rose, from R99.99/month to R119.99/month, while the discounted Premium Student plan (aimed at students) rose by R34.99/month to R37.99/month.

First annual profit

“Price increases and price adjustments and so on, that’s part of our business toolbox and we’ll do it when it makes sense,” Norstrom told the FT.

Price increases combined with cost-cutting efforts in recent years helped Spotify achieve its first annual profit last year. — Harshita Meenaktshi, (c) 2025 Reuters, with additional reporting (c) 2025 NewsCentral Media

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