Spotify is gearing up for another price increase for its customers, aiming to advance towards profitability.
According to Bloomberg News, the Swedish music streaming leader plans to raise its subscription fees by $1 to $2 a month in five key markets, including the UK. This announcement triggered a 4.6% surge in its shares during early trading sessions.
Expanding beyond music, Spotify has been exploring new avenues to attract a broader audience.
Daniel Ek, Spotify’s CEO, noted in February the company’s various options for revenue growth, including raising prices. He also acknowledged that their podcast investments negatively impacted the company’s finances in 2023.
In a significant move last year, Spotify delved into the realm of audiobooks, challenging the domain of Audible.
The upcoming price adjustments are anticipated to offset the costs associated with audiobooks, which are currently available to paid subscribers for up to 15 hours per month.
Previously in July, Spotify had increased its subscription prices by £1 per month.
