Bloomberg reports that Spotify will raise prices soon. By the end of April, those premium subscriptions in places like the UK, Australia, and Pakistan will go up – $1 more for individuals and $2 for couples and families. The U.S. will not be an exception to this, only the price hike will be coming later in the year.
Here’s where it gets interesting: Spotify is reportedly adding a new $11/month tier – the same price as the current Premium plan. This one gets you ad-free music and podcasts, but audiobooks are off the table. Simply, if you want audiobooks, you’ll have to pay extra.
- Audiobooks cost money: Adding audiobooks meant making deals with publishers. Spotify needs cash to cover those costs on top of what they already pay for music.
- Record labels want their cut: Spotify hoped audiobooks would lessen their dependence on music deals. But record labels weren’t happy about potentially getting paid less, so they pushed for higher prices to make up for it.
Credit: Spotify
The question now is whether users will consider having audiobooks a good enough reason to warrant a $1/month price hike, or if they will switch plans to stay at the same price point as before. It’s also hard to say if people will jump ship over this.
Last year’s hike didn’t scare away users, considering that Spotify actually gained subscriptions afterward. However, only time will tell how this latest round will impact their loyal listeners.
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