Rewritten:
Spotify is planning to increase the price of its Premium subscriptions, with individual plans set to rise by around $1 per month and multi-member plans going up by $2 per month. This reported price hike will be the second increase in nine months for Spotify customers. The changes are expected to begin in Australia, Pakistan, the United Kingdom, and other markets by the end of the month, with US subscribers seeing price increases later in the year.
To help offset the increase, Spotify will introduce a ‘new’ basic tier that excludes audiobooks for $10.99/month. This move is likely to cater to users who solely use Spotify for music and podcast listening. The company’s recent acquisition of Findaway for $123 million shows Spotify’s commitment to the audiobook sector.
While Spotify has invested heavily in audiobooks and podcasts to diversify revenue streams, it hasn’t always been profitable. The move to charge extra for audiobooks may put pressure on users who have become accustomed to the service since its introduction in 2011. The aim of these changes is likely to help boost Spotify’s overall revenue and profitability in the long run.
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