By Kayla DeKraker
Spotify announced it will increase its prices as it plans to add new features and improvements to the music streaming platform.
“Price increases and price adjustments and so on, that’s part of our business toolbox and we’ll do it when it makes sense,” co-president and chief business officer of Spotify Alex Norström told the Financial Times.
He added that the price hikes will not come without improvements to the platform for the customer’s benefit.
“Essentially we want the consumer to win,” he emphasized.
Some improvements announced so far include “AI-driven content” and a larger collection of audiobooks and podcasts.
Related: Spotify CEO ‘Feels Good’ About New Audiobook Venture
Spotify’s reach continues to grow, and it hopes to reach 1 billion subscribers. Reuters reported that Spotify’s shares jumped nearly 8% following the price hike announcement and 40% this year so far.
New pricing will be revealed in an email to subscribers next month.
According to Variety, Spotify also stated that “users have told us that they want a dedicated space within the app to share their next favorite song, podcast or audiobook with friends and family, and an easy way to keep track of recommendations.” The platform wants “to give users what they want and make those moments of connection more seamless and streamlined in the Spotify app.”
This refers to a new messaging feature that the app plans to add. However, it will allow users to “accept or reject” messages, reassuring users that “Spotify’s Terms of Use and Platform Rules against illegal and harmful content still apply to Messages, so if something doesn’t feel right, you can easily report that content or account.”
There will also be “proactive detection technology to scan messages for certain unlawful and harmful content, and our moderators will review reported content.”
This change is not without controversy, though. Spotify has been promising an upgraded plan for two years now, and Norström has said that it’s taking time.
On a call last month, he said, “As long as I’ve been here, which is now, I think, close to 15 years, we’ve had very high value standards around what and when to release product. We’re working towards these very high value standards and we’re making progress for sure, but it’s taking time.”
Some of the holdup is due to negotiations with musical artists.
“In music, of course, we’re reliant on our partners to a certain degree,” he said. “We cannot comment on anonymized and often incorrect speculation about potential future features.”
Although some details are still unknown, Spotify continues to engage audiences and keep them hooked with its large streaming library.
Read Next: Spotify Raises Premium Price for Second Time in One Year
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