STOCKHOLM, Sweden: Spotify is preparing to charge listeners more as it pushes toward an ambitious goal of reaching 1 billion users and rolls out new features, the Financial Times reported, citing the company’s Co-President and Chief Business Officer Alex Norstrom.

The music streaming giant plans to tie future price hikes to the launch of new services, Norstrom said, framing increases as part of a long-term strategy to improve profitability while expanding its offerings.

Spotify did not immediately respond to a request for comment.

Earlier this month, the Swedish company said its premium individual subscription would rise to 11.99 euros (US$14.05) from 10.99 euros in several regions, including South Asia, the Middle East, Africa, Europe, Latin America, and Asia-Pacific, starting in September.

“Price increases and price adjustments and so on, that’s part of our business toolbox and we’ll do it when it makes sense,” Norstrom told the FT.

Spotify, which has more than 600 million active users, has relied on cost reductions and gradual price adjustments to shore up its finances. This strategy helped Spotify record its first-ever annual profit last year.