Spotify to Increase Prices of Premium Plans in UK, Australia, Pakistan, and Introduce New Basic Tier

Spotify is planning to increase the prices of its plans by approximately $1 to $2 per month in the UK, Australia, and Pakistan by the end of April.

The company will also raise prices in the US later this year.

Additionally, Spotify is introducing a new basic tier that will offer music and podcasts, but not audiobooks, for the current individual premium plan.

The news caused Spotify's shares to rise more than 5%.

Spotify is reportedly introducing a new basic tier with price increases for individual, duo, and family plans.

The individual plans will cost around $1 more per month, while family and duo plans will increase by $2.

The current monthly premium plan prices in the US are $10.99 for an individual, $14.99 for duo, and $16.99 for family.

Spotify declined to comment on the report.

The company offers a free, ad-supported service and a subscription-based paid service, with premium subscribers being the primary revenue source.

A potential price hike could help Spotify achieve profitability as it anticipates strong subscriber growth.

In February, Spotify predicted a 14% increase in premium subscribers to 239 million in the current quarter, surpassing estimates of 238.3 million.

The streaming giant has expanded its offerings with podcasts and audiobooks to attract more users and reduce dependence on the music industry.

Major labels like Universal Music Group, Sony Music Entertainment, and Warner Music Group have content licensing deals with Spotify, making up approximately 74% of the audio content streamed on their platform as of December 31.