According to Bloomberg, sources familiar with the matter stated that the Swedish-based streaming giant Spotify intends to increase monthly subscription fees in five key markets by between one and two dollars by the end of April.
These markets include the UK, Australia, and Pakistan, with plans to raise prices in the United States later in the year, as per the sources.
Following this news, Spotify's stock price rose by 4.6% in early trading on the New York Stock Exchange, reaching approximately $200,000.
The price hike will help cover expenses related to the audiobook service, one of its popular offerings introduced last year.
Spotify allows customers to listen to up to 15 hours of audiobooks monthly as part of their paid subscription.
While the company pays publishers for these audiobooks, it generates minimal revenue from the service, as it imposes fees on subscribers who exceed the maximum limit of the free service, which is 15 hours per month.
At the same time, the company plans to introduce a new subscription tier that includes music and podcasts without audiobooks for a monthly fee of $11.
Subscribers in this tier will need to pay separately if they wish to listen to audiobooks on the Spotify platform.
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