Spotify to Introduce new Subscription Tier and Once Again Raise Prices

Last year, Spotify decided to raise its prices for its Premium subscribers to $10,99. Users were not too happy about the decision, yet most decided to not cancel their plans. Since then, Spotify has introduced various new features and announced further developments.

Yet, the most recent news from the company is not the most positive. According to Bloomberg, Spotify is planning to once again increase its prices. Costs for individual subscription plans in the US, UK, Pakistan, and Australia will increase by $1, while Duo and Family plans will increase by $2.

Additionally, the company will introduce a new plan (“Basic”) that will not include audiobooks, yet cost just as much as the premium plan. Customers under the plan will have to pay extra for listening to audiobooks, which are currently part of the premium plan that includes 15 hours of listening time.

While Spotify declined to comment on the report, it is said that a price hike could “help push for profitability at the company that is expecting strong growth in subscribers” (as per Reuters). The decision comes after its paid subscription rose by 15% (31 million) in 2023 and after it initiated three rounds of job cuts to save costs. Considering the company’s growth and layoffs, it is fair to question whether it is truly necessary for Spotify to further raise its prices.