- Spotify to raise prices by $1 to $2 per month in key markets like the UK and Australia.
- Price hikes aimed at covering costs of audiobooks and introducing new subscription tiers.
- Introduction of a new basic tier excluding audiobooks but offering music and podcasts at current premium plan price.
Spotify is set to increase prices by $1 to $2 per month in key markets, including the UK and Australia, to support audiobooks and unveil new subscription options for users.
Spotify’s plan for enhanced profitability
Spotify plans to raise the price of its popular audio service in several key markets for the second time in a year, a crucial step toward reaching long-term profitability.
Also read: Spotify launches video feature in 11 markets
The streaming giant will increase prices by about US$1 to US$2 a month in five markets by the end of April, including the UK, Australia and Pakistan, according to people familiar with the matter. It will raise prices in the US, its largest territory, later this year, said the people, who asked not to be identified discussing confidential plans.
Higher prices to support new audiobook service
The higher prices will help cover the cost of audiobooks, a popular service introduced late last year. Spotify offers customers up to 15 hours of audiobook listening a month as part of their paid plan. While the company pays publishers for books, it has so far only collected additional revenue from listeners who exceed the limit.
The Swedish audio company is also going to introduce a new basic tier that will offer music and podcasts – but not audiobooks – for the current US$11 monthly price of an individual premium plan, said the people. Users of that plan will need to pay for audiobooks.
The new basic tier is the first of what will be several new pricing options from Spotify. The company has also been working on a “supremium” plan, which would charge customers a higher price for access to high-fidelity audio, among other features, as Bloomberg reported last year.
