Spotify is planning to raise prices in several markets, including Pakistan, the UK, and Australia, according to International media sources.
The increase is expected to be around $1 to $2 per month. Currently, Spotify offers various packages in Pakistan ranging from Rs14/day to Rs479/month for families. The company’s shares rose by over 5% following this announcement.
The price hike will also affect the United States later this year, with individual plans increasing by about $1 per month and family and duo plans by $2. Spotify will introduce a new basic tier that excludes audiobooks but includes music and podcasts from the current individual premium plan.
Spotify aims to diversify its offerings and boost profitability. It forecasts a significant increase in premium subscribers, expecting around 239 million by the end of the current quarter. The company has been expanding its content beyond music, incorporating podcasts and audiobooks to attract more users.
Despite declining to comment on the report, Spotify’s move towards a potential price increase aligns with its strategy to reduce reliance on the music industry and expand its user base. The company has licensing deals with major music labels like Universal, Sony, and Warner, which account for the majority of audio content streamed on its platform.
