According to a recent report from Bloomberg, Spotify is gearing up to update its subscription plans and pricing. The changes will include price increases in key markets and the introduction of a new plan that excludes audiobooks.
The report states that in certain markets like the UK, Australia, Pakistan, and others, prices for individual, family, and duo plans will see a rise of about $1 to $2 per month. In the US, the largest market for Spotify, a price hike is expected later in the year, as confirmed by sources familiar with the matter.
The increased pricing is aimed at covering the cost of audiobooks, a new offering from Spotify that allows subscribers up to 15 hours of listening per month. As the company needs to compensate audiobook publishers for this service, the price hike is essential to balance out the costs incurred.
Additionally, Spotify is set to launch a new plan that solely focuses on music and podcasts, excluding audiobooks. This plan will be priced the same as the current individual premium plan, requiring users to pay separately for audiobooks. The company’s strategy seems to target audiobook enthusiasts while providing an alternative for those uninterested in that content.
In addition to these changes, Spotify is rumored to introduce a “supremium” plan offering high-fidelity audio and other undisclosed features. This premium tier has long been speculated, and its potential launch in 2024 is anticipated.
Spotify’s diversification efforts beyond music, with podcasts and now audiobooks, have raised concerns among music industry partners. The push for alternative content has led to fears of reduced revenue for artists and labels, prompting Spotify to consider price adjustments. Following a successful price hike last year that saw significant user growth, Spotify is confident in implementing further increases.
