Spotify Reportedly Preps Additional Price Increases in the U.S., the U.K., and More — With the Long-Awaited Supremium Tier Still Missing

spotify price increase
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spotify price increase
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A new Spotify price increase is reportedly on the way for the U.S. and several other markets. Photo Credit: Thibault Penin

Why stop at one price increase? After raising its monthly cost in markets including the U.S. last year, Spotify is reportedly preparing to bump its prices once again.

The Stockholm-based streaming platform’s newest pricing adjustments entered the media spotlight in a recent Bloomberg piece; at the time of this writing, Spotify itself hadn’t put out a formal release about the subject. Perhaps not coincidentally, the rumored price boosts have come to light just days following the announcement of a bolstered agreement between Spotify and Universal Music Group (UMG).

Previously, 2023 saw UMG push for far-reaching royalty changes both at Spotify and at competitors such as Deezer. Besides delivering price increases in the U.S. (to $10.99 per month for the individual plan) and a multitude of other nations, as mentioned, last year saw Spotify move to cease paying recording royalties on tracks with less than 1,000 annual streams.

Now in effect, that approach has effectively cut off recording payments for the vast majority of on-platform tracks – to the particular benefit of the major labels and the detriment of indie and DIY professionals.

Furthermore, similarly beneficial (for the majors) compensation recalibrations are in full swing at services like Apple Music, which, we exclusively reported in October of 2023, is paying a higher royalty rate for works made available in the comparatively expensive spatial audio format.

Specifically when it comes to Spotify’s prices, though, the majors haven’t hesitated to spell out their desire for additional increases. UMG head Lucian Grainge last summer expressed the belief that the service’s aforesaid hikes weren’t enough, with Warner Music Group CEO Robert Kyncl having echoed the point in different words in September.

Moving beyond pertinent background details and returning to Spotify’s heightened prices, increases of $1 (for individual tiers) and $2 (for family plans) are reportedly set to arrive in five markets by April’s end.

Those nations include Australia, the U.K., and Pakistan, with U.S. prices poised to rise sometime later in 2024, per Bloomberg, which cited anonymous and purportedly in-the-know sources. However, the retooled packages will include complimentary audiobook listening, which the diversification- and profitability-minded Spotify has fully embraced.

Paid users currently receive 15 hours of audiobook access per month, but post-changes, this option will reportedly be available only via the more expensive packages outlined above. Inversely, the existing $10.99 individual tier (in the U.S.) will remain in place at the same price, featuring music and podcasts but not no-additional-cost audiobook support, according to the outlet. Predictably, these subscribers will reportedly have the option of purchasing audiobooks.

Lastly, in terms of pricing pivots, Bloomberg reiterated also that Spotify’s Supremium tier, complete with high-fidelity audio, is forthcoming. But it’s unclear when exactly the long-rumored (and long-awaited) package will go live and at what price.