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Spotify Plans Price Hikes and New Subscription Tier
Spotify is set to raise subscription prices in several major markets before impacting the U.S. in the coming months. The company aims to boost revenue amid similar price hikes by other entertainment streaming services. The price increases will cover the cost of audiobooks, a new service offered by Spotify.
Key Takeaways:
- Spotify will increase prices for its subscription tiers by up to $2 across five markets by the end of April.
- Individual plans will reportedly increase by $1 while family and duo plans will increase by $2.
- The new prices will help Spotify cover the cost of audiobooks, a new service introduced last year.
- At least $9 billion was paid by Spotify to record labels, artists and others last year.
Do You Know?
- Spotify previously announced price hikes in its subscription tiers in July and has been working on a “supremium” subscription since 2021.
This move by Spotify mirrors similar price increases by other major entertainment streaming services. The consequences of these price hikes may impact customer retention and the company's revenue growth in the future. This move could also set a precedent for other streaming platforms to follow suit.