Spotify is gearing up to raise its Premium subscription prices for the second time in a year. While this might not sound great for users, it got the stock market excited – their shares shot up by 8% when the news broke.
The price bump is expected to hit five markets in April 2024, including Australia, Pakistan, the U.K., and two others yet to be named. U.S. subscribers can also expect a similar increase later in the year. So, if you’re a Spotify subscriber, be prepared to see your monthly bill go up by $1 or $2.
But it’s not all about raising prices; Spotify is also rolling out new subscription options. There will be a basic tier for $11 a month, giving access to music and podcasts, with audiobooks available for an extra fee. Then there’s a fancier “supremium” tier, boasting high-quality audio and possibly other luxurious perks.
This move might come as a surprise, given that Spotify only upped its prices last July. But when you consider the big bucks they’re spending on exclusive podcasts like The Joe Rogan Experience (reportedly $200 million over several years) and royalties to music creators (reportedly 70 cents for every dollar), it starts to make sense. However, it wouldn’t hurt to verify these numbers with an independent audit.
Keep in mind, though, that this is all based on reports from Bloomberg’s sources – Spotify hasn’t officially confirmed anything yet. They could change their minds or delay the price hike. But let’s face it, it’s an easy way for them to rake in millions more every month, even if it might irk some subscribers.
We’ll be watching for any updates from Spotify, so stay tuned for more news.
