The Spotify logo is displayed on the floor of the New York Stock Exchange on December 4, 2023.
Brendan McDermid | Reuters
Spotify Shares rose 6% on Wednesday Bloomberg reports The company said it will raise the price of its premium subscription service for the second time in a year in several markets, including the United States.
The Swedish music streaming company will raise prices in the United States later this year, Bloomberg reported on Wednesday, citing people familiar with the matter. According to Bloomberg, people familiar with the matter said Spotify will increase monthly prices by about US$1 to US$2 in five markets including the UK, Australia and Pakistan by the end of April.
Bloomberg reports that the higher price will help the company cover the cost of its audiobook service, which provides subscribers with 15 hours of audiobook listening time per month.
According to Bloomberg, Spotify will also launch a new basic subscription plan for $11 per month, which is the same price as the current premium plan. The base tier will reportedly include music and podcasts, but not audiobooks, and will be the first of several new priced subscription plans to be launched soon.
Spotify declined to comment on the Bloomberg report.
Last year, the audio company increased the price of its premium subscriptions by $2 in the United States and several other countries. Spotify, which competes with streaming services from apple, Amazon and YouTube have struggled to become profitable for years.
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