According to a report by Bloomberg, music streaming giant Spotify is planning to increase prices in multiple markets this year, including the US. The company is also working on introducing a new basic tier and a “supremium” plan.
Spotify has been looking to raise monthly prices by around $1 to $2 in five markets by the end of this month, with countries like the UK, Australia, and Pakistan included. Price hikes in the US are expected later in the year. These plans are part of Spotify’s efforts to boost profitability as it currently pays out a significant portion of its earnings to music owners and has invested heavily in podcasts, including a $200 million deal for the “Joe Rogan Experience” podcast.
In addition to price increases, Spotify is working on new tier offerings. One of these is a new basic tier that will include music and podcasts for $11 a month. Users may need to pay extra if they want access to audiobooks as well. The other is a “supremium” plan that will offer features like high-fidelity audio.
These changes come after Spotify raised its prices in July where most plans saw a $1 per month hike. Competitors like Apple Music and YouTube Premium have also raised their prices in recent years. However, Spotify did not immediately respond to Business Insider’s request for comment on these developments.
