NIX Solutions: Spotify Announces Pricing Changes and Expansion into Audiobooks

Music streaming giant Spotify has revealed adjustments to its pricing policy and tariff plan structure. This year, individual Premium subscriptions will undergo a modest price increase of $1, while Premium for families and couples will see a $2 hike in the UK, Australia, Pakistan, and two other unspecified regions.

NIX Solutions

New Offerings and Pricing Plans

In the US, where Spotify holds the largest market share, users can expect similar pricing modifications, insiders report. These changes aim to offset the costs associated with Spotify’s foray into audiobooks, a new frontier the company has been actively exploring.

Spotify subscribers can now access up to 15 hours of audiobooks per month, but with revenue only generated from users surpassing this limit, the company must still compensate publishers for content rights.

Future Outlook and Offerings

In addition to the price adjustments, Spotify plans to roll out a new subscription tier focused solely on music and podcasts. Priced similarly to the current individual Spotify Premium subscription, this plan will require separate payment for audiobook access. Furthermore, a premium tier called “Supremium,” featuring high-quality audio and additional yet-to-be-disclosed features, is rumored to debut in 2024.

Diversifying Content and Revenue Streams

Spotify’s expansion beyond music to include podcasts and audiobooks signals a strategic move to lessen its dependence on artist and label payments, which presently constitute around 70% of its revenue. However, this shift has sparked concerns among the company’s music partners.

Subscriber Growth and Confidence

Despite past price hikes, Spotify has seen remarkable audience growth, with an increase of 113 million users, marking the company’s best figure to date, reminds NIX Solutions. By the close of 2023, Spotify boasted 602 million users, including 236 million Premium subscribers. This robust growth has emboldened company management to proceed confidently with the latest pricing adjustments.

We’ll keep you updated on any further developments.