Spotify will soon get price increases and subscription slots

Gone are the days when Spotify’s pricing menu was considered “stable.” Spotify was able to maintain reasonable prices until July 2023, when it decided to raise prices. And by the end of this April, Spotify is raising prices again. Last time, Spotify increased its price from $9.99 to $10.99, but this time it will range from $1 to $2 per month in the top five markets, including the UK, Australia, and Pakistan. The other two countries have not been disclosed, but are likely Brazil and India.

According to Bloomberg, US users will notice a price increase on Spotify later this year. Currently, Spotify’s Premium He subscription is available for $11 per month, and Duo users (for couples who use two accounts with one purchase) are available for $15 per month. Additionally, a family plan for six members costs $17 per month.

Audiobooks are the reason for Spotify’s price hike

The main reason for changing prices is to cover the cost of audiobooks. Audiobooks were introduced on a trial basis last year. There are currently over 250,000 audiobooks available. Users need a premium subscription to access audiobooks. If a user exceeds his 15 hours of free audiobooks, a 10-hour charge is mandatory.

Spotify introduces subscription tiers

The price increase decision is largely based on an ivory tower approach that takes into account that all users use audiobooks. Also, charging a flat fee to users who don’t listen to audiobooks is not a fair deal. So a subscription tier is in the works.

The new subscription tier will maintain the current price of $11 per month, but will not include audiobooks. Audiobooks can only be accessed by paying an additional fee.

Recently, Spotify expanded its premium audiobook library to more regions. With this expansion, the number of audiobooks has also increased from 200,000 to 250,000 at the end of 2023. This could have been an additional expense for the streaming giant. However, there is no denying the fact that most of the company’s revenue goes towards paying license fees. Given these circumstances, Spotify’s decision seems viable.

It’s also important to note that Spotify isn’t the only one that has increased prices. This ruling follows price changes from Apple, Amazon, and YouTube Music Premium.

April 3, 2024