Spotify signals further price increases, rolls out direct messaging feature

Spotify has signalled at further price increases in September for some markets. 

The new tool is the latest in a string of updates aimed at expanding the streaming giant’s subscriber base and helping it hit the goal of one billion active platform users.

No specifics have been shared about the potential rise in cost for users, but Co-President and Chief Business Officer Alex Norström recently told the Financial Times that incremental price rises were “part of our toolbox now”. Last year, Spotify increased the price of its Premium subscription tiers in the US, UK and Australia. 

An individual Spotify Premium account currently costs $11.99 (US) and £11.99 (UK). On 4th August, it was announced that the price of Premium would rise from September, impacting users in South Asia, the Middle East, Africa, Europe, Latin America, and Asia-Pacific. 

According to Norström, increases in price will supposedly be compensated for via new services and an improved overall use experience. These now include Direct Messages, a newly launched tool billed as “one-to-one conversations where you can share Spotify content and react with text and emojis”. The feature is aimed at providing users with a “dedicated space” to communicate about music and audio with friends and family. 

The function can also make suggestions about who to message based on shared likes within the platform’s libraries, although the accounts must have collaborated on Jams, Blends or playlists, or be part of a Family or Duo plan. Spotify has been quick to point out significant advantages for artist and content creators, because now “more users can spread the word” about a track, album or podcast “helping drive discovery”.

Between 2009 and 2023 Spotify’s monthly fee for a Premium account remained largely unchanged. Alongside ongoing efforts to cut overheads – including demonetising tracks with under 1,000 streams – a number of price increases in the past two years helped the company report its first annual profit, in 2024, since its launch. During this time, services such as podcasts, audiobooks, and an AI DJ have all been introduced. 

All of this comes at a time when numerous musicians and labels are pulling their music from Spotify. Among acts like Godspeed You! Black Emperor and Xiu Xiu, electronic music label Kalahari Oyster Cult recently pulled its music from the streaming giant following reports that co-founder and CEO Daniel Ek’s Prima Materia venture capital fund was heavily investing in defence company Helsing, which specialises in artificial intelligence–driven military technologies. Among Spotify’s other controversial investments, it also donated $150,000 to Trump’s inauguration.

Earlier this week, Apple Music launched a new tool allowing users to import playlists directly from Spotify, one of its biggest rivals.