Spotify set to Increase Prices in Select Markets, Introduce New Tiers – Company’s Profitability Drive

Spotify is planning to increase prices in select markets, including the US, this year. According to a report by Bloomberg, the price hike could see your Spotify subscription become more expensive in the near future. The company is also working on introducing new tiers such as a basic tier and a “supremium” plan.

In markets like the UK, Australia, and Pakistan, price increases of around $1 to $2 per month are expected by the end of this month. The US will see a price hike later in the year. Additionally, Spotify is working on new plans like a basic tier that includes music and podcasts for $11 a month for an individual premium plan. Users would need to pay extra for audiobooks under this tier. The “supremium” plan is rumored to include high-fidelity audio features.

These efforts by Spotify are aimed at increasing profitability for the company. Spotify has shared that it pays out $0.70 for every dollar earned to music owners and has made significant investments in podcasts, such as the exclusive deal with the “Joe Rogan Experience” podcast which cost the company at least $200 million.

In recent years, competitors like Apple Music and YouTube Premium have also raised prices. Apple Music’s individual plan became $1 more expensive in 2022, while YouTube Premium’s individual plan saw a $2 increase the following year. However, Spotify has yet to comment on these reports.