Spotify’s shares surged 6% following a Bloomberg report announcing the company’s intention to raise prices for its premium subscription service in various markets, including the U.S., marking its second increase within a year.
As per Bloomberg’s sources, the Swedish music-streaming giant plans to implement price hikes in the U.S. later in the year.
These increases, expected by the end of April, will see monthly fees rise by approximately $1 to $2 across five markets, including the United Kingdom, Australia, and Pakistan.
The report suggests that these adjustments aim to offset the costs associated with Spotify’s audiobook service, offering subscribers 15 hours of audiobook content monthly.
Additionally, Spotify reportedly intends to introduce a new basic subscription tier priced at $11 per month, mirroring the current cost of its premium plan.
According to Bloomberg’s sources, this tier will encompass music and podcasts but will exclude audiobooks, marking the first of several new subscription plans to come.
Spotify has chosen not to comment on Bloomberg’s report.
This move follows last year’s price hike of up to $2 for its premium subscription in the U.S. and various other countries.
Despite competing with streaming services from industry giants like Apple, Amazon, and YouTube, Spotify has faced challenges in achieving profitability over the years.
