The anticipated increase will likely see prices go up by $1 to $2 per month across various subscription tiers, affecting users in Pakistan along with the UK and Australia.
Currently, Spotify offers a range of packages in Pakistan, including a daily rate of Rs14, a monthly fee of Rs299 for individual subscriptions, Rs149 for students, Rs390 for duo plans, and Rs479 for family packages.
Shares of Spotify (which competes with rivals like Apple and Amazon) experienced a more than 5% increase following the news of the price hike.
The report also mentions Spotify’s plans to raise prices in the United States later this year, alongside the introduction of a new basic tier. This new tier will include music and podcasts (excluding audiobooks) at the current individual premium plan rate.
According to Bloomberg, individual plans in the U.S. will see a bump of about $1 per month, while family and duo plans will rise by $2.
For U.S. users, Spotify’s current premium plans include $10.99 for an individual, $14.99 for a duo, and $16.99 for a family, as per the company’s website.
Spotify declined to comment on the specifics of the report.
The company offers both an ad-supported free service with limited features and a subscription-based premium service, with most of its revenue coming from premium subscribers.
A potential price increase could aid in Spotify’s pursuit of profitability, especially as it anticipates significant growth in subscribers. In February, Spotify forecasted a nearly 14% increase in premium subscribers to 239 million for the current quarter, exceeding estimates of 238.3 million.
To diversify its offerings and reduce dependence on the music industry, Spotify has introduced podcasts and audiobooks, among other content. The platform has content licensing agreements with major firms such as Universal Music Group, Sony Music Entertainment, and Warner Music Group, which collectively accounted for about 74% of audio content streamed on Spotify as of December 31.
