April 17, 2024

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Spotify wants to increase prices again and is working on a new basic subscription

Spotify wants to increase prices again and is working on a new basic subscription

Spotify is planning to increase its subscription prices again in several major countries. Additionally, the streaming service plans to launch a new subscription soon.

Spotify wants to increase its subscription prices in several “key markets” for the second time in a year. The price increase should eventually push the streaming service out of the red. Which Bloomberg reports Based on sources familiar with the plans.

Price increases of an additional $1 or two per month will be announced at the end of April in the first five countries, including Britain, Australia and Pakistan. This will be followed by a price increase later this year in the US, Spotify's largest market.

It is not yet known when it will be the Netherlands' turn. Last summer, Spotify increased subscription prices in the Netherlands for the first time. Since then, a premium subscription for one person costs one euro more: 11 euros per month. This is the same monthly amount that competitor Apple Music pays.

Subscribe without audiobooks

Spotify is also introducing a new subscription that doesn't include audiobooks. According to Bloomberg, this basic level is the current premium subscription price, which is €11 per month. The streaming service does not currently offer audiobooks in the Netherlands. It is clear that the new basic subscription will appear in our country only after the price increase and the introduction of the audiobook function.

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In many countries, Spotify Premium subscribers can listen to audiobooks for up to 15 hours per month. Only if they want to listen longer do they have to pay extra for each audiobook. With the new Basic subscription, you'll always have to pay for each audiobook.

Spotify is also rumored to be working on a more expensive Supremium subscription, including long-awaited access to better audio quality. But when that will be introduced remains unclear, according to Bloomberg.

necessary to make a profit

Spotify has suffered losses every year since its IPO in 2018. About 70 percent of the company's revenue goes to paying royalties to the music industry. Previous price increases did not result in a significant loss of subscribers for Spotify, which makes the Swedish company believe that it is possible to increase prices further. In this way, the music service hopes to eventually be able to achieve a structural profit.

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