Spotify will reportedly raise subscription prices for individual and family accounts following the previous price hike in July 2023.
Spotify Premium will allegedly raise the subscription price by $1/month for individuals and $2/month for duos and families. The current $11/month Individual subscription will rise to $12/month. The $15/month Duo plan and the $17/month Family plan will increase to $17/month and $19/month, respectively.
Spotify may raise subscription prices in late April
Spotify will first bring increased subscription prices to its customers in five markets, including the United Kingdom, Australia and Pakistan. The new prices will reportedly come into effect in those territories in late April.
Bloomberg reports that Spotify will mirror its move to the United States, its largest market, later this year. The price hike will apparently mitigate costs associated with bringing more than 200,000 audiobooks to Spotify last November.
A new basic tier is coming
Bloomberg claims in a separate report that Spotify will launch a new basic tier aimed at folks who don’t want to listen to audiobooks on Spotify. In exchange for $11/month, individuals will be able to stream music and podcasts.
Subscribers to that plan will have to pay separately for audiobooks. This new tier is allegedly the first of what will be several new pricing options from Spotify.
Spotify also raised prices in 2023
The Swedish company hadn’t raised prices since bringing its music-streaming service to the United States in 2011—until 2023, when all four subscription plans went up by $1/month in North and South America, Europe and Asia.
Even though it’s the world’s leading music service with more than 600 million users, Spotify still doesn’t consistently turn a profit. In the third quarter of 2023, the company reported its first profit in a year.
Part of the pressure comes from music rightsholders, who have been pushing streaming services like Amazon Music, Apple Music and Spotify to raise prices in order to keep up with inflation.