Spotify Exec Says More Price Hikes Coming as Company Eyes 1 Billion Users

Spotify is gearing up for more price increases as the streaming giant doubles down on new features and chases an ambitious goal of reaching 1 billion users worldwide, the Financial Times reports.

Alex Norström, Spotify’s Co-President and Chief Business Officer, told the outlet that price hikes are now “part of our toolbox” after years of keeping subscription costs flat. The executive emphasized that any increases would come alongside new services and enhanced features for users.

Spotify only started raising prices two years ago, a move that helped deliver its first-ever annual profit in 2024. Earlier this month, Spotify announced premium subscription price bumps in select markets starting in September, sending shares surging nearly 10%.

“Price increases and price adjustments and so on, that’s part of our business toolbox and we’ll do it when it makes sense,” Norström said, adding that the company would “keep adding value” for customers alongside any price hikes.

Norström’s sentiments echo comments made by Spotify Co-Founder and CEO Daniel Ek on the company’s Q1 2025 earnings call back in April. Ek noted “when you’re still growing super fast, raising prices is not a smart strategy,” but that “as growth then sort of modulates as you get larger and larger into the market, pricing becomes another leg to the stool, another lever to pull.”

The strategy appears to be working. Spotify continues to gain market share despite the increases, reporting 276 million subscribers last month, up 12% year-over-year, while monthly active users climbed 11% to 696 million. The company’s stock notched an all-time high of $785 on June 27th, per Investor’s Business Daily.

With just “over 3% of the world’s population” currently paying for recurring subscriptions, Norström sees massive room for growth. Spotify is reportedly banking on enhanced “stickiness” through new features like customizable track transitions and its AI DJ tool. The platform has also concertedly expanded into audiobooks and podcasts while users have created nearly 9 billion playlists.

Spotify is still working on a rumored “superfan” tier that could cost an additional $6 monthly, targeting artists’ biggest supporters. While progress is being made, Norström admits “it’s taking time” to finalize details.

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