By: Nick Gambino
For the second time in a year, Spotify is planning to raise the prices on their Premium subscription plans. While it might not be good news for users, the stock market responded favorably upon hearing of the news, with an 8% bump by the time the bell rang.
The price increase is expected in five markets sometime in April 2024, according to Bloomberg. This will affect those in Australia, Pakistan, the U.K and two other unspecified areas. A similar price hike will affect subscribers in the U.S. later in the year. Spotify subscribers should expect to see their monthly subscription go up either $1 or $2 a month.
As part of the same side of the coin, the company plans to also introduce new subscription tiers. A new basic tier will see subscribers gaining access to music and podcasts for just $11 a month, while access to audiobooks will require an additional fee. Then there’s the “supremium” tier that will supposedly include more luxurious offerings like hi-fi audio.
Spotify last increased their prices back in July 2023, so this planned bump is a little surprising. Or not, if you consider how much they are shelling out for large-profile podcasts like The Joe Rogan Experience. That non-exclusive deal is reportedly valued at $200 million over several years. Apparently, they are also paying out 70 cents for every dollar to music rights holders. I feel like that last “factoid” could stand to be verified by a third-party audit.
For now, this is simply a report by Bloomberg, citing sources in the know. We have yet to receive any official word from Spotify on the matter. For all we know, they might scrap the plan or push it a year. Though, I wouldn’t bet on it as it’s a relatively painless way to increase their monthly revenue by millions of dollars. All that said, they won’t easily get away with constantly increasing prices every 6-12 months.
For now, we’ll keep an eye out for any official announcements.
