Bloomberg Reports: Spotify Prices Set to Increase in the Coming Year

According to a recent report by Bloomberg, Spotify is planning to increase prices in select markets this year. This includes the US, where users could see a price hike 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. The basic tier that includes music and podcasts for $11 a month for an individual premium plan is one of the new plans that Spotify is working on. 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, which 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 the past, Spotify raised prices in July, increasing most plans by $1 a month. Competitors like Apple Music and YouTube Premium have also raised prices in recent years. Apple Music’s individual plan became $1 more expensive in 2022, while YouTube Premium’s individual plan saw a $2 increase the following year.

Spotify has yet to comment on these reports, but it’s clear that the company is focused on increasing profitability through pricing changes and new tiers.

By Samantha Johnson

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