Spotify to hike prices by up to $2, introduce new basic tier: report

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Spotify Expertise intends to raise prices on its plans by about $1 to $2 a month in 5 markets together with the UK, Australia and Pakistan by the tip of April, Bloomberg News reported Wednesday, citing folks accustomed to the matter.

Shares of the Swedish music streaming service, which competes with rival providers from Apple and Amazon, rose greater than 5% on Wednesday.

Spotify will elevate costs in the US, its largest territory, later this 12 months, in accordance with the report.

Spotify will elevate costs within the US later this 12 months, in accordance with the report. REUTERS

The corporate can also be going to introduce a brand new fundamental tier that may provide music and podcasts — however not audiobooks — for the present $11 month-to-month worth of a person premium plan, the report stated.

The brand new fundamental tier is the primary of what is going to be a number of new pricing choices from Spotify, the report added.

Underneath the brand new pricing, particular person plans will go up by about $1 a month, whereas household plans and so-called duo plans for {couples} will rise by $2, the Bloomberg report added.

On a month-to-month foundation, the corporate affords premium plans together with $10.99 for a person, $14.99 for duo and $16.99 for household within the US, in accordance with the corporate’s web site.

Spotify declined to touch upon the report.

CEO Daniel Ek stated earlier in February the corporate has “loads of levers to drag, together with worth will increase,” including the investments within the podcasts have been a drag on the enterprise in 2023.

The corporate affords an advertising-supported free service with restricted options and a subscription-based paid service that provides entry to all its performance, with premium subscribers accounting for many of its income.


CEO Daniel Ek
Podcasts have been a drag on the enterprise in 2023, CEO Daniel Ek stated earlier this 12 months. Getty Photos

A possible worth hike might assist push for profitability on the firm that’s anticipating sturdy progress in subscribers.

Spotify in February forecast a close to 14% bounce in premium subscribers to 239 million within the present quarter, which was above estimates of 238.3 million.

The corporate has launched choices together with podcasts and audiobooks in a bid to chop reliance on the music business and achieve extra customers.

It has content material licensing offers with corporations resembling Common Music Group, Sony Music Leisure and Warner Music Group, with content material from such firms accounting for about 74% of audio content material streamed on Spotify’s platform as of Dec 31.

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