Spotify confirms subscription price hike as it eyes 1 billion users

Spotify, one of the world’s largest music streaming platforms, is preparing to raise subscription prices as part of its strategy to fund new services and features while chasing an ambitious goal of reaching 1 billion users globally, according to a report by the a news agency.

The update was shared by Spotify’s Co-President and Chief Business Officer, Alex Norstrom, who emphasized that the upcoming price hikes would go hand-in-hand with fresh offerings designed to strengthen Spotify’s ecosystem.

The company has not issued an official press release on this development, and when approached, Spotify did not immediately respond to a Reuters request for comment.

Spotify Price Hike Details

Earlier this month, the Swedish streaming giant announced that it would increase the monthly subscription price for its Premium Individual plan in several global markets starting September 2025.

• The cost will move up from €10.99 to €11.99 ($14.05).

• The hike applies to multiple regions, including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific.

Speaking to the Financial Times, Norstrom said, “Price increases and price adjustments and so on, that's part of our business toolbox and we'll do it when it makes sense.”

Why Spotify Is Raising Prices

Spotify has long prioritized expansion over profitability, often offering competitive rates to capture market share against rivals like Apple Music, YouTube Music, and Amazon Music. However, the company has been under growing investor pressure to improve margins.

The planned price hikes are seen as a way to:

• Boost profit margins.

• Fund the development of new services beyond music, including audiobooks, podcasts, and AI-driven features.

• Strengthen its premium segment, which is crucial to long-term growth.

Spotify New Services and Features on the Horizon

Although Spotify has not detailed what these new services will be, industry analysts expect:

• Enhanced AI-powered recommendations.

• Integration of podcasts and audiobooks into bundled plans.

• Exclusive content and interactive music experiences.

The move comes at a time when Spotify is also expanding its advertising business and experimenting with social music-sharing tools to keep users engaged.

Global Impact of the Price Increase

• The rise to €11.99 per month makes Spotify slightly more expensive in several markets, though still competitive with Apple Music, which charges $10.99–$11.99 depending on the region.

• In emerging markets like India and Southeast Asia, Spotify is still priced lower compared to its Western subscriptions, helping it maintain growth momentum.

Spotify Latest updates 2025

In 2025, Spotify is advancing its efforts to prioritize user-focused innovations, aiming to provide listeners with greater creative control over their music choices while strengthening the platform’s social engagement features.

Here's a rundown of the latest key updates:

1. The New "Mix" Tool for Playlists

This is one of the most significant new features, allowing Premium subscribers to create seamless, DJ-style transitions between tracks on their playlists.

• How it Works: You can access the "Mix" button on any of your playlists. You have the option for an instant "Auto" blend or to manually customize transitions.

• Customization: The manual mode provides a high level of control. You can adjust volume, EQ, and effects, and the app displays the BPM (beats per minute) and musical key for each song, making it easier to create a smooth, natural-sounding flow.

• Social and Collaborative: This feature also supports collaborative playlists, allowing multiple Premium users to work together on creating a shared mix.

2. Expanded AI Capabilities

Spotify is leveraging AI to make music discovery and curation more intuitive and personalized than ever before.

• The AI Playlist Generator, now launched in over 40 additional markets, leverages generative AI to craft personalized playlists from simple text prompts. Users can enter phrases such as “upbeat pop tracks for my European summer trip” or “relaxing tunes for a rainy evening” to instantly receive a customized selection of songs.

• AI DJ Upgrade: The AI DJ feature has been enhanced to allow for voice requests. You can now verbally ask the DJ to play a specific genre, mood, or artist, making the experience more interactive.

3. Enhanced Social Sharing

Spotify has deepened its integration with Instagram to make sharing and discovering music more seamless.

• Audio Previews on Instagram Stories: When you share a song from Spotify to your Instagram Story, a short audio clip of the track is now automatically included. Viewers can listen to a snippet of the song directly in the story and tap a sticker to open it on Spotify.

• Real-Time Sharing in Instagram Notes: A new feature allows you to display the song you're currently listening to in your Instagram Notes, giving your friends a real-time update on your musical mood.

4. Improved User Control

New features give users more control over their music recommendations and library.

• "Snooze" and "Hide" Buttons: A new "Snooze" feature temporarily removes a track from your recommendations for 30 days. The "Hide" button has also been improved, allowing you to hide a track from a specific playlist without affecting your overall recommendations.

• Playlist Management Tools: New mobile tools make it easier to add, sort, and edit your playlists, including the ability to create custom cover art with new stickers and labels for your mixed playlists.

Conclusion

Spotify’s decision to raise prices while rolling out new services reflects its balancing act between maintaining affordability and ensuring long-term profitability. As the platform works towards its 1 billion user milestone, these strategic moves are expected to shape the future of digital music streaming.