Spotify to Increase Premium Subscription Prices Again, Stock Rises

Spotify’s stock surged by 8% on Wednesday following a Bloomberg report indicating that the music-streaming giant plans to increase its premium subscription prices in several markets, including the U.S., for the second time this year.

According to Bloomberg, Spotify, the Swedish music-streaming company, will implement a price hike in the U.S. later this year. The report, citing sources familiar with the matter, reveals that monthly prices will rise by $1 to $2 in five markets, including the United Kingdom, Australia, and Pakistan, by the end of April.

The higher prices are aimed at offsetting the costs of Spotify’s audiobook service, which offers subscribers 15 hours of audiobook listening time per month. This move aligns with Spotify’s ongoing efforts to expand its offerings and enhance user experience.

In addition to the price increase, Spotify will introduce a new basic subscription tier priced at $11 per month, the same as the current premium plan. This basic tier will include access to music and podcasts but will exclude audiobooks. Bloomberg reports that this is the first of several new subscription plans that Spotify plans to roll out.

Despite Bloomberg’s report, Spotify has declined to comment on the pricing changes.

Last year, Spotify increased its premium subscription prices by up to $2 in the U.S. and other countries. The company, which competes with streaming services from Apple, Amazon, and YouTube, has faced challenges in achieving profitability over the years.

As Spotify continues to navigate the competitive landscape of music streaming, these strategic price adjustments and new subscription offerings reflect its commitment to growth and innovation in the industry.