According to sources familiar with the situation, a report by Bloomberg News claims that Spotify is preparing to raise subscription fees once more.
According to Bloomberg, the streaming service will increase monthly fees by roughly $1 to $2 in five markets—the UK, Australia, and Pakistan—by the end of April. A price increase in the US is scheduled for “later this year.”
This would be Spotify’s second price increase in the United States this year; in July, the company increased the monthly cost of its individual Premium plan from $9.99 to $10.99.
When USA TODAY contacted the corporation, it declined to comment on the findings of Bloomberg.
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Why is Spotify increasing its prices?
Per Bloomberg, the price increase will assist in defraying the expense of audiobooks, a new Premium feature that was introduced at the end of last year. Spotify offers up to 15 hours of audiobooks per month, with over 200,000 titles available.
What is the monthly cost of a Spotify subscription?
Currently, the cost of a Spotify Premium subscription in the United States is $10.99 for single listeners, $14.99 for “Duo” plans with two accounts, and $16.99 for family plans with up to six accounts. The monthly cost of entry for students is $5.99.
According to Bloomberg, the business will launch a new basic tier at the existing $11 monthly pricing per person account, which will include music and podcasts but not audiobooks.
When was the last increase in Spotify’s price?
In July 2023, Spotify most recently disclosed a $1 to $2 price increase. Before the new tariffs took effect, existing subscribers had a grace period of one month.
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Spotify’s stock value
Following the release of the study, the company’s stock price surged, reaching as high as $293 on Wednesday before closing the day at $291.77, up 8.2%.
