Spotify Technology SA is reportedly planning to increase its subscription fees by $1 to $2 per month in select markets, including the UK, Australia, and Pakistan, by the end of April, according to sources familiar with the matter cited by Bloomberg News on Wednesday.
This move led to a more than 5 percent surge in the Swedish music streaming service’s shares during early trading.
The company is set to implement similar price hikes in its largest market, the United States, later this year, as per the report.
Additionally, Spotify is preparing to introduce a new basic tier, priced at the current monthly rate of $11 for individual premium plans, which will offer access to music and podcasts but exclude audiobooks. This new tier marks the beginning of several upcoming pricing options from Spotify, Bloomberg noted.
When contacted by Reuters, Spotify declined to comment on the report.
In February, CEO Daniel Ek mentioned the possibility of price increases, emphasizing the strain that investments in podcasts had placed on the business in 2023.
Currently, Spotify’s premium plans in the US include individual plans at $10.99, duo plans at $14.99, and family plans at $16.99 per month, according to the company’s website. Under the proposed changes, individual plans would see a $1 monthly increase, while family and duo plans would rise by $2, according to Bloomberg.
