According to a recent report from Bloomberg News, Spotify is gearing up for another round of subscription prices increase. Citing sources familiar with the matter, Bloomberg revealed that the popular streaming service intends to raise prices by approximately $1 to $2 per month in five key markets, including the United Kingdom, Australia, and Pakistan. Following these adjustments, a price hike in the United States is expected later in the year.
When was the last Spotify price hike?
This impending move would mark the second subscription price increase within a year for Spotify. Last July, the company raised the monthly rate for its individual Premium plan from $9.99 to $10.99 in the U.S. Currently, a Spotify Premium subscription in the U.S. costs $10.99 per month for individual listeners, $14.99 per month for the “Duo” plan accommodating two accounts, or $16.99 per month for a family plan catering to up to six accounts. Students enjoy access for $5.99 per month.
Introducing New Tier
In light of the forthcoming adjustments, Spotify is also introducing a new basic tier. Priced at the current $11 monthly rate per individual plan, this tier will offer music and podcasts but will exclude audiobooks, which have become a prominent feature of Spotify’s offerings. Previously, audiobooks were included as part of the subscription at no extra cost, but users opting for the new basic tier will now need to pay for audiobooks separately.
The motivation behind these price adjustments is said to be twofold. Firstly, the increased revenue will help Spotify offset the costs associated with offering audiobooks, a service introduced last year. While initially provided free of charge to subscribers for up to 15 hours of listening per week, the inclusion of audiobooks in the subscription package has evidently incurred additional expenses for the company.
Moreover, these changes reflect Spotify’s strategic efforts to diversify its subscription options and cater to the varying preferences of its user base. By rolling out new pricing tiers and adjusting existing ones, Spotify aims to provide greater flexibility while ensuring its offerings remain sustainable in the long run.
It’s worth noting that existing subscribers typically receive a grace period before the new rates take effect, allowing them time to adjust their subscriptions accordingly. However, specific details regarding the timeline of the price increases and the implementation of the new subscription tier are yet to be officially confirmed by Spotify.
As the streaming landscape continues to evolve and competition intensifies, it’s becoming increasingly common for platforms like Spotify to periodically reassess their pricing strategies. While price hikes are rarely met with universal acclaim, they are often deemed necessary for companies to invest in content, improve services, and remain viable in an ever-changing market.
As such, subscribers can expect to see adjustments to their Spotify subscriptions in the coming months, with the company aiming to strike a balance between providing value to users and sustaining its business operations amidst evolving consumer demands and industry dynamics.
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