Spotify is reportedly planning price increases and working on new tier offerings. The music streaming service is set to raise monthly prices by approximately $1 to $2 in five markets, including the UK, Australia, and Pakistan, by the end of this month. A price hike is also expected in the United States later this year.
Alongside the price adjustments, Spotify is developing new plan offerings. One of these is a new basic tier that will provide access to music and podcasts at the current price of $11 a month for an individual premium plan. However, users opting for audiobooks would need to pay an additional fee. Another offering in the works is a 'supremium' plan that would include features like high-fidelity audio.
These initiatives form part of Spotify's strategy to achieve consistent profitability. The company has highlighted that it pays out $0.70 for every dollar earned to music owners and has made significant investments in podcasts. For instance, the exclusive rights to the 'Joe Rogan Experience' podcast reportedly cost Spotify at least $200 million under a multi-year agreement.
Spotify's last price increase was implemented in July, with most plans seeing a $1 per month rise. Notably, competitors in the music streaming industry have also adjusted their pricing in recent years. Apple Music's individual plan became $1 more expensive per month in 2022, while YouTube Premium's individual plan saw a $2 per month increase the following year.
As of now, Spotify has not provided a comment on these developments.
