Spotify plans to increase its subscription prices again in several major countries. In addition, 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 ultimately get the streaming service out of the red. Bloomberg reports this based on sources familiar with the plans.
The price increase of an extra 1 or 2 dollars per month would be announced at the end of April in the first five countries, including Britain, Australia and Pakistan. A price increase would also follow 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. The Premium subscription for one person has since cost 1 euro more: 11 euros per month. That is the same monthly amount as that of competitor Apple Music.
Subscription without audio books
Spotify is also working on introducing a new subscription that does not include audiobooks. According to Bloomberg, that basic level is the price of the current Premium subscription, 11 euros per month. The streaming service does not currently offer audio books in the Netherlands. It is obvious that the new basic subscription will only appear in our country after a price increase and the introduction of the audio book function.
In multiple countries, Spotify Premium subscribers can listen to audiobooks for up to 15 hours per month. Only if they want to listen for longer do they have to pay extra per audiobook. With the new basic subscription you will always have to pay per audiobook.
Spotify is also rumored to be working on a more expensive Supremium subscription, including the long-awaited access to better audio quality. But when this will be offered 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 toward paying royalties to the music industry. Previous price increases have not led to a major loss of subscribers at Spotify, which makes the Swedish company think that prices can be increased further. In this way, the music service ultimately hopes to be able to make a structural profit.
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