Spotify Raising Prices to Fund Audiobook Expansion, Cheaper Tier Possible for Music-Only Fans

• Spotify is raising prices by $1-2 per month starting in April in markets like the UK, Australia, and Pakistan. Price hikes expected in the US later this year.

• Price increase is to pay for adding audiobooks to the service. Spotify started offering audiobooks last year.

• Subscribers who don't use audiobooks may get a cheaper $11/month tier without audiobook access. Add-on audiobook access would cost extra.

• Spotify raised prices $1 last year, generating over $1 billion extra revenue, mostly paying for music licensing fees.

• Many streaming services raised prices in 2022, with average US households now spending $61/month on streaming, up 27% year-over-year.