(Reuters) -Spotify ( SPOT ) will raise prices as it invests in new features and targets 1 billion users, the Financial Times reported on Sunday citing the music streaming provider's Co-President and Chief Business Officer Alex Norstrom.

The increases would be accompanied by planned new services and features, the FT cited Norstrom as saying in an interview.

Spotify ( SPOT ) did not immediately respond to a Reuters request for comment.

Earlier in August, the Swedish firm said it would increase the monthly price of its premium individual subscription in some markets from September, as it looks to improve profit margins.

It said the price will rise to 11.99 euros ($14.05) from 10.99 euros in markets including South Asia, the Middle East, Africa, Europe, Latin America and the Asia-Pacific region.

"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 newspaper.

Price increases combined with cost-cutting efforts in recent years helped Spotify ( SPOT ) achieve its first annual profit last year.

($1 = 0.8536 euros)