Spotify plans to raise prices: Report

107342682 17017085592023 12 04t164649z 840743789 rc2eq4aih9xa rtrmadp 0 usa stocks

107342682 17017085592023 12 04t164649z 840743789 rc2eq4aih9xa rtrmadp 0 usa stocks

The Spotify logo was seen on the New York Stock Exchange floor on Dec. 4, 2023. Spotify stock rose 8% following a Bloomberg report stating that the company plans to increase prices for its premium subscription service in various markets, including the U.S., for the second time in a year.

According to Bloomberg, Spotify will raise prices by about $1 to $2 in countries like the U.S., the U.K., Australia, and Pakistan. This price hike is expected to cover the costs of the company’s audiobook service, which offers 15 hours of listening time per month for subscribers.

In addition to the price increase, Spotify will introduce a new basic subscription tier for $11 per month, excluding audiobooks. This new tier will be one of several new subscription plans being introduced by the company, as reported by Bloomberg.

Last year, Spotify raised prices for its premium subscription in the U.S. and other countries. The company, which faces competition from Apple, Amazon, and YouTube among others, has been striving to achieve profitability in recent years.

Spotify declined to comment on Bloomberg’s report.

Spotify’s stock rose 8% after reports that the company plans to increase prices for its premium subscription service in several markets, including the U.S. This will be the second price hike in a year, with monthly prices expected to go up by $1 to $2 in the U.S., UK, Australia, and Pakistan. The increase in prices will help cover the costs of Spotify’s audiobook service, which offers 15 hours of listening time per month. Additionally, Spotify will introduce a new basic subscription tier for $11 per month, which will not include audiobooks. Last year, the company raised prices for its premium subscription in several countries to help improve profitability against competitors like Apple, Amazon, and YouTube.

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