“Everything comes down to determining how the subscriber wins; that is, how to ensure that, over time, they get a better relationship between the value received and the price paid.” That was the message co-CEO Alex Norström delivered to investors in Spotify’s earnings call on October 22, opening the door to another increase in Premium subscription prices, merca2.es reported.
The company has not confirmed a price change. But Norström pointed to a pattern: every time Spotify adds a new content vertical or product layer, the subscription price has eventually followed.
Norström’s “value stick” case for higher prices
Norström framed the pricing debate around what he called the “value stick” — the balance between the value a subscriber receives and the price they pay. During Spotify’s first 15 years, the company invested almost exclusively in value: a better product and a better content experience, he said.
“As we grew and gained scale, we began to apply price increases, which allowed us to monetize and reinvest those revenues in the product to offer greater value,” Norström said. “That is the path we are on. When you see us launch more products or add new content verticals to the platform, it is simply because we want to deliver more value to our subscribers and users.”
AI features Spotify points to as justification
Two additions stand out as the likely basis for a higher price: artificial intelligence and the audiobook library. Spotify has taken a complicated stance on AI — it created a special label for artist and tracks made primarily with AI and steps to filter fake songs released under artists’ names — while also building AI into the everyday app experience.
Those features range from remixes of existing songs to AI agents that improve the recommendation algorithm, with Spotify DJ — a voice assistant that recommends songs and explains why — as the most visible use so far.
CFO Christian Luiga said the app is well suited to this technology. AI investments have accelerated feature launches without growing headcount, and early deployments of preference models are already showing double-digit improvements in content discovery, with users spending more time on algorithmic recommendation sets, he said.
Audiobooks expand to more than 180 markets
Audiobooks are Spotify’s biggest bet for new value. Norström said the company is expanding the format to more than 180 markets by the end of the year, which would make Spotify the first audiobook service with global reach. The move is meant to raise subscriber lifetime value and open monetization through add-ons, he said.
The precedent is podcasts: when Spotify added that content to the platform, the price eventually grew. The same logic, the source noted, points to a possible new round of increases in 2027 — a reality users of the platform may have to accept.
Spotify signals potential Premium adjustments
Has Spotify confirmed a Premium price increase? No. The company has only signaled openness to one, with co-CEO Alex Norström raising the possibility during the October 22 earnings call. Streaming platforms that open these conversations almost always review subscription prices upward, not downward.
When could Spotify raise prices? The pattern described in the reporting points to 2027, after audiobooks reach more than 180 markets and the new AI features are fully rolled out.
What new features is Spotify adding to justify higher prices? AI-powered tools — including Spotify DJ, AI remixes and AI-driven music discovery — plus a global audiobook catalog available in more than 180 markets by the end of the year.
Who made these announcements? Alex Norström and CFO Christian Luiga, speaking during Spotify’s quarterly earnings call on October 22.
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