Spotify is reportedly planning price increases and working on new tier offerings.
The music-streaming service plans to raise monthly prices by roughly $1 to $2 in five markets, including the UK, Australia, and Pakistan, by the end of this month, Bloomberg reported, citing people familiar with the matter who asked not to be identified because of the plans' confidentiality. In the United States, a price hike will come later this year.
Spotify is also working on new plans. One is a new basic tier that'll include music and podcasts at $11 a month for an individual premium plan, but users would need to pay extra if they also want audiobooks, Bloomberg reported. The other is a "supremium" plan that would include features such as high-fidelity audio, Bloomberg reported.
The efforts are part of Spotify's push to become consistently profitable.
The company has said it pays out $0.70 for every dollar it makes to music owners, and it's shelled out hundreds of millions for podcasts. The "Joe Rogan Experience" podcast alone cost the company at least $200 million for a multiyear deal.
Spotify last raised prices in July, hiking the cost of most plans by $1 a month.
Competitors have also raised prices in recent years. Apple Music's individual plan got $1 more expensive a month in 2022, and YouTube Premium's individual plan rose by $2 a month the following year.
Spotify did not immediately respond to a request for comment from Business Insider.
