Spotify Technology SA is planning to increase the prices by about $1 to $2 a month in five countries including the United Kingdom, Australia and Pakistan by the end of April, reported Bloomberg.
As per the report, Spotify is also planning to introduce a new basic tier that will offer music and podcasts — but not audiobooks — for the current $11 monthly price of an individual premium plan in US. This new basic tier will be the first of several new pricing options from Spotify.
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By the new pricing, individual plans will go up by about $1 a month, while family plans and so-called duo plans for couples will rise by $2. At present, Spotify is offering individual plans for $10.99, duo at $14.99 and family at $16.99 in US.
The Bloomberg report further mentioned that the higher prices will help the company cover the costs of its audiobook service. The audiobook service offers 15 hours of audiobook listening time per month for subscribers.
Following this announcement, Spotify's stock closed up 8% on Wednesday. Last year, Spotify increased the prices by as much as $2 for its premium subscription in the United States and several other countries. Earlier, the company said that it might see a near 14% jump in premium subscribers to 239 million in the current quarter.