Spotify Reportedly Announces Pricing Adjustments; Subscription Cost Set to Rise

Highlights

Spotify to increase Premium subscription prices in selected markets.
Introduction of a new $10.99 “Spotify Premium Plus” tier including audiobooks.
Current $9.99 plan to remain as “Spotify Premium” with ad-free music and podcasts.
Strategic revamp aimed at accommodating the expansion into podcasts and audiobooks.

Get ready to pay a bit more for your Spotify subscription, as the leading music streaming service is preparing a shake-up to its pricing plans.

According to reports, Spotify is hiking prices for its ad-free Premium tier while also introducing a new mid-range subscription option.

The adjustments come as Spotify aims to offset increasing costs from its expansion into podcasts and newly launched audiobook offerings.

Premium subscribers in markets like the U.K., Australia, and Pakistan will reportedly see individual plan prices rise from $9.99 to $10.99 per month by the end of April, with similar hikes coming to other regions like the U.S. later in 2023.

Spotify New Plan: An Extra Premium?

But in an interesting strategic move, Spotify isn’t just simply raising its current Premium pricing across the board.

Instead, it plans to keep the existing $9.99 per month plan as a separate “Spotify Premium” tier that includes ad-free music and podcasts but excludes the recently added audiobook catalogue.

A new $10.99 per month “Spotify Premium Plus” plan will give subscribers access to the full ad-free experience spanning music, podcasts, and audiobooks.

For audiobook lovers, this new top tier essentially bundles in Spotify’s $9.99 per month audiobook plan that launched just last month.

The two-tier premium model allows Spotify to raise its prices for super users who want the full enchilada, while still maintaining an ad-free music and podcasts option at the legacy $9.99 price point.

However, it adds an extra layer of complication to Spotify’s offerings that could confuse some customers.

Spotify Premium Plus: Music, Podcasts & Audiobooks. All ad-free. $10.99/month.

Spotify’s pricing revamp shows the streaming giant is searching for a sustainable model as it branches out from just music into orchestrating a complete audio entertainment hub.

Whether subscribers embrace being charged more or opt for the limited music-and-podcasts tier remains to be seen.

But one thing is clear – as streaming competition intensifies and content costs mount, Spotify can no longer avoid increasing its prices if it wants to maintain its premium positioning and full-service content ambitions.

FAQs

What are the new changes to Spotify’s subscription plans?

Spotify is adjusting its subscription model by increasing the price of its ad-free Premium tier from $9.99 to $10.99 in certain markets like the U.K., Australia, and Pakistan, with plans to extend this change to other regions including the U.S.

Additionally, Spotify is introducing a “Spotify Premium Plus” plan at $10.99 per month, offering access to music, podcasts, and audiobooks without ads.

Why is Spotify raising its prices and introducing a new plan?

The adjustments come as Spotify seeks to manage the rising costs associated with its expansion into new content areas such as podcasts and audiobooks.

By revising its pricing and subscription tiers, Spotify aims to establish a sustainable model that supports its growth into a comprehensive audio entertainment platform.

What will the new “Spotify Premium Plus” plan offer?

The “Spotify Premium Plus” tier, priced at $10.99 per month, will include the entire ad-free Spotify experience: music, podcasts, and the newly launched audiobooks.

This plan is designed for users who wish to access Spotify’s full range of content without interruptions.