Spotify Likely To Raise U-S Subscriptions Prices This Year

Spotify is planning to raise prices again in the U.S. and some other markets, according to The Wall Street Journal citing people familiar with the matter, as the streaming company aims to make good on its profitability promises.

The price increases signal Spotify is testing how much its loyal customer base will pay.

Prices will go up by $1 to $2 in five markets this month—the U.K., Australia, Pakistan, Sri Lanka and Ghana—and in the U.S. later this year, one of the people said. 

After laying off some 2,300 employees in three rounds of cuts last year, the company, which has posted losses for years as it chased growth, said it would turn to consistent profitability this year. Executives have touted how Spotify has transformed from a music-streaming service to an audio company with podcasting and audiobooks that help differentiate it from rivals.

This round of price increases is seen as helping cover the cost of Spotify’s push into audiobooks, according to one of the people. Spotify late last year started offering 15 hours of free audiobook listening to subscribers in certain markets, including the U.S., where an individual subscription costs $10.99.