Spotify is planning new subscriptions and higher prices

Last year's price increase worked very well for Spotify, so why not do it again? New subscriptions and prices are on the way.
Spotify Learning Courses

Spotify is preparing to overhaul its subscription models and pricing, according to a new report from Bloomberg. This includes price increases in some major markets. There will also be a new subscription that does not include audio books. Prices will increase by approximately $1 per month for individual plans and $2 per month for family and duo plans. The changes will initially take effect in the UK, Australia, Pakistan and two other undisclosed markets, the report says. In the US, the largest market, there will be a price increase “later this year,” according to “people familiar with the matter.”

The higher prices are supposedly intended to help cover the costs of audiobooks, which Spotify has recently started offering. Spotify subscribers can listen to up to 15 hours of audiobooks per month. But of course the company has to pay the publishers of the audiobooks for all the listening time it offers “for free.” Even if so far it only makes money from audiobooks from listeners who exceed the limit mentioned above.

Spotify will apparently also introduce a new subscription that only offers music and podcasts without audio books. The price corresponds to that of the current individual subscription. Users of this upcoming model will have to pay for audiobooks. So basically it goes like this: First Spotify adds audiobooks to the existing Premium subscription, then it increases the price but introduces a new subscription that is identical without audiobooks.

The whole thing is obviously designed to attract premium subscribers to audio books. There’s also a Supremium plan coming, which offers access to high-res audio and a few other unnamed features. Spotify has recently been increasingly aggressive in trying to diversify from pure music offerings, as around 70% of its revenue goes to record labels and artists. This is how the podcast push came about a few years ago, and recently there have also been audio books and video learning courses.

However, this has alarmed Spotify’s partners in the music industry, who now fear they will make less revenue from the streaming service. In response to this fear, Spotify has reportedly increased prices. Last year, Spotify increased its prices for the first time since launching its premium subscription. Despite this, the user base grew by 113 million – the largest growth ever. At the end of 2023, Spotify had a total of 602 million users, of which 236 million were paying customers.

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