Spotify has indicated additional price increases for customers as the music streaming platform invests in new features and targets one billion users, according to senior executive Alex Norström.

The co-president and chief business officer told the Financial Times that price rises are “part of our toolbox now” after years of keeping subscription costs flat.

However, Norström emphasised that increases would be accompanied by new services and features designed to add value for customers.

Spotify began raising prices only two years ago, a move welcomed by investors focused on profitability after years of subscriber growth prioritisation.

Price increases and cost-cutting measures led to the company’s first annual profit in 2024.

Earlier this month, Spotify announced monthly premium subscription price increases in select markets starting in September, sending shares up nearly 10%.

Norström said the company would continue price adjustments “when it makes sense” while ensuring consumers benefit from added value.

Despite price increases, customer conversion continues to grow, with Spotify gaining market share according to Norström.

He noted that “over 3% of the world’s population are paying us on a recurring basis” and emphasised significant expansion runway remains.

Spotify reported subscriber numbers rose 12% in the past year to 276 million, while monthly active users increased 11% to 696 million, exceeding expectations.

Despite this growth, the company swung to a net loss in the second quarter.

Norström predicted Spotify could eventually exceed one billion users, calling it “definitely not impossible” and “certainly a goal.”

The executive oversees subscriber and advertising businesses, along with content across music, podcasts, and audiobooks.

The platform is developing features to provide greater value and subscriber retention.

Recent additions include nearly 9 billion user-created playlists and customisable track transitions.

Spotify continues expanding audiobook and podcast services alongside tools like AI DJ functionality.

Spotify has been developing a “superfan” subscription tier that could cost an additional $9.17 monthly, targeting dedicated music fans.

Major record labels view this as a potential growth driver, though Norström indicated during an earnings call that while “we’re making progress,” development is “taking time.”

The company’s strategy focuses on expanding across devices through AI investments to enable more interesting, lower-friction content creation.

Norström described this as Spotify’s “ubiquity strategy” as the platform positions itself to compete against AI-driven content recommendations while maintaining user engagement through playlist creation and platform interaction.

The pricing strategy reflects Spotify’s shift toward balancing growth with profitability while investing in features designed to justify higher subscription costs through enhanced user value and service differentiation.