Bloomberg reported that Spotify, a Swedish streaming company, plans to raise monthly subscription fees in five critical markets by one to two dollars by the end of April, according to sources with knowledge of the situation.
According to the sources, the United States is expected to increase prices later this year, and the United Kingdom, Australia, and Pakistan are among the markets in question.
Spotify’s stock price increased by 4.6% in early trading on the New York Stock Exchange in response to this news, reaching approximately $200,000.
The price increase will assist in the reimbursement of expenses associated with the audiobook service, which was introduced last year and has become a popular service.
As part of their paid subscription, Spotify permits users to listen to audiobooks for a maximum of 15 hours each month.
The company incurs fees on subscribers who surpass the 15-hour monthly limit of the free service, despite the fact that it compensates publishers for the audiobooks. Consequently, the company generates minimal revenue from the service.
Simultaneously, the organization intends to implement a new subscription tier that comprises music and podcasts exclusively, with audiobooks excluded, for a monthly fee of $11.
If subscribers in this tier desire to listen to audiobooks on the Spotify platform, they will be required to make a separate payment.