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Spotify's increased subscription prices are aimed at offsetting the expenses associated with audiobooks. ( Image Source :Getty )
After maintaining its monthly subscription at $9.99 for several years, music streaming gaint Spotify made a shift last July when its Spotify Premium service increased to $10.99. Now, it seems the music platform is gearing up for another price hike, with a significantly shorter interval this time around. According to news agency Bloomberg, Spotify is set to increase its subscription charge by $1 to $2 in the UK, Australia, Pakistan, and two additional markets by the end of April, with plans for a subsequent increase for US customers "later this year."
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The report further suggests that Spotify is poised to increase prices in the United States later this year. This adjustment will coincide with the introduction of a new basic tier, which will provide access to music and podcasts but exclude audiobooks. This new tier will be integrated into the existing individual premium plan and is anticipated to be the first of several new pricing options offered by Spotify.
With the new pricing structure, individual plans are expected to increase by approximately $1 per month, while family plans and duo plans tailored for couples will see a $2 rise. Presently, Spotify's premium plans are priced at $10.99 for individuals, $14.99 for duos, and $16.99 for families on a monthly basis in the US.
The increased subscription prices are aimed at offsetting the expenses associated with audiobooks, a service that gained popularity after its introduction late last year. Spotify includes up to 15 hours of audiobook listening per month as part of its paid plan. While the company compensates publishers for the books, it has currently only garnered additional revenue from listeners who surpass the usage limit.
For those content to explore audiobooks through alternative avenues, Spotify will unveil a new "basic" plan at the existing $10.99 Premium rate, excluding audiobooks but still offering music and podcasts. However, it's hoped that this adjustment won't compromise the audio quality provided by the service.
On a related note, reports suggest that the company is still intending to launch its long-awaited "Supremium" plan, which will incorporate lossless streaming and additional features. In recent weeks, some Spotify users have observed a Dolby Atmos logo appearing on the app's Now Playing screen. This strongly suggests that spatial audio could be included as one of the bonus features within Spotify's Supremium package.
Earlier in March, the Swedish music streaming gian announced it will raise subscription prices in France in response to a new tax. The streaming service argues that the tax, implemented by the government last year at 1.2 per cent on streaming companies' revenue, will not achieve its intended goal of supporting music creation.
The tax, effective since January 1, imposes a 1.2 per cent levy on Spotify and its competitors, such as Deezer, Apple Music, and Google's YouTube Music. The funds will be directed to France's Centre National de la Musique (CNM), established four years ago, in a bit to aid the French music industry. While all affected companies oppose the law, Spotify, being the largest player in the country, has been the most outspoken in its opposition, the report added.
Published at : 04 Apr 2024 04:26 PM (IST)
English (US)