Report: Spotify Price Increases Are Coming in the UK, Australia, and Other Markets

Spotify is reportedly planning to raise the price of its Premium subscription in five markets in April, including the UK, Australia, and Pakistan. According to a report from Bloomberg citing people familiar with the matter, price increases are also coming to the US later this year.

Back in July 2023, Spotify already increased the price of its Premium subscription from $9.99/month to $10.99. Apple Music, Amazon Music Unlimited, and YouTube Music Premium also announced similar price increases last year.

“The success of the price increase has given management confidence to seek even more,” Bloomberg is reporting today. “Under the new pricing, individual plans will go up by about $1 a month, while family plans and so-called duo plans for couples will rise by $2.”

According to the report, Spotify’s upcoming price increases reflect the company’s new diversification strategy with a new audiobook catalog that’s now available for Premium members in select markets. However, Spotify, which has yet to turn an annual profit since it went public in 2018, will need to absorb the cost of this new audiobook offering.

“Spotify’s move into other kinds of programming has alarmed its partners in the music industry, who fret the company will try to reduce their royalties. As a result, major music companies have been pushing Spotify and its competitors to raise prices,” the report reads.

Bloomberg also reports that Spotify is planning to revamp its paid offerings with more tiers. While the current Premium tier with ad-free music plus 15 hours of audiobook listening per month will get more expensive, the company will reportedly launch a new “Basic” tier that will just provide access to ad-free music at $11/month, which is what the current Spotify Premium plan costs today. A more expensive “supremium” plan with better audio quality and other features is also still in the pipeline, according to Bloomberg.