Spotify is increasing the prices for its subscription by $1 to $2 per month by the end of April, the second time within nine months, people familiar with the matter told Bloomberg.
According to sources, the audio-streaming platform will launch the price hike along with a new basic tier for people who only want to listen to music and podcasts.
Spotify's current individual monthly Premium subscription costs around $9.99 to $10.99. It is not certain if the price hike will also affect other discount options for students and "Duo."
Spotify's major markets in the US, the United Kingdom, Australia, and Pakistan are expected to receive the new subscription options first.
The audio-streaming site first increased its subscription services back in July last year by $1 to $2 per month, just a few months before it first launched its audiobook platform for Premium users.
Spotify has yet to provide a statement regarding Bloomberg's report.
Spotify Expands Revenue Source into Audiobooks
The price hike will supposedly help Spotify fund its audiobook services, which he has started pushing more over the past months as a new profit avenue amid dwindling sales on its music and podcast platforms.
The company even rolled out a new dedicated subscription plan for users to solely listen to audiobooks.
On the other hand, Premium users will need to individually purchase each title if they want to continue listening to the books once their free 15 hours-per-month allowance ends.
Spotify's audiobook catalog currently houses over 200,000 titles across multiple genres, including major best-sellers and other original stories.
Related Article : New Spotify Subscription Lets Users Listen to Audiobooks Only
Spotify is Losing Less Money Now
So far, the push towards audiobooks has helped Spotify to lose less money than it did last year. Spotify's first quarter report indicated an increase in ad profits as users started to grow once again since the surge during the pandemic.
It can be remembered that the company's shares dropped by 14% in July last year following a huge decline in its profits over the past years.
The company has reportedly been leveraging more AI technology into its operations amid cost-cutting measures.
