Report: Spotify to hike rates on plans to help pay for audiobooks

The company is said to be raising rates to pay for audiobooks.

Spotify is planning a subscription price hike, according to a Bloomberg News report.

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Bloomberg quotes people familiar with the matter as saying the streaming service plans to raise prices by about $1 to $2 per month by the end of the month in five markets, including the United Kingdom, Australia and Pakistan. A U.S. price hike will follow “later this year.”

Spotify raised the monthly rate for its individual Premium plan from $9.99 to $10.99 in July 2023.

The company has not announced a rate increase, and declined to comment on Bloomberg’s report.

According to the story, the price hike will help cover the cost of audiobooks.

In the U.S., a Spotify Premium subscription costs $10.99 per month for an individual listener, $14.99 per month for the “Duo” plan with two accounts, or $16.99 per month for a family plan with up to six accounts. Students have access for $5.99 per month.

The company will be introducing a new basic tier that will offer music and podcasts, but no audiobooks, at the current $10.99 monthly rate per individual plan, according to Bloomberg’s report.