Your Spotify subscription may be about to go up in price

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Spotify, the music streaming giant, is shaking things up with price hikes and a new subscription plan. If you love Spotify but hate ads, get ready to dig a little deeper into those pockets.

Bloomberg reports that Spotify will raise prices soon. By the end of April, those premium subscriptions in places like the UK, Australia, and Pakistan will go up – $1 more for individuals and $2 for couples and families. The U.S. will not be an exception to this, only the price hike will be coming later in the year.

Here’s where it gets interesting: Spotify is reportedly adding a new $11/month tier – the same price as the current Premium plan. This one gets you ad-free music and podcasts, but audiobooks are off the table. Simply, if you want audiobooks, you’ll have to pay extra.

This is intriguing considering that Spotify just launched its $9.99 audiobooks plan last month. In addition, it bundled in 15 free hours of audiobook content to the premium plan in the U.S. Spotify has been pretty consistent with prices until last year’s hike. So why are they enacting a price hike now? There are two big reasons I can think of:

  • Audiobooks cost money: Adding audiobooks meant making deals with publishers. Spotify needs cash to cover those costs on top of what they already pay for music.
  • Record labels want their cut: Spotify hoped audiobooks would lessen their dependence on music deals. But record labels weren’t happy about potentially getting paid less, so they pushed for higher prices to make up for it.
Your Spotify subscription may be about to go up in price

Credit: Spotify

The question now is whether users will consider having audiobooks a good enough reason to warrant a $1/month price hike, or if they will switch plans to stay at the same price point as before. It’s also hard to say if people will jump ship over this.

Last year’s hike didn’t scare away users, considering that Spotify actually gained subscriptions afterward. However, only time will tell how this latest round will impact their loyal listeners.

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