Spotify to raise prices in some markets, Bloomberg News reports

Spotify Technology SA (SPOT.N) intends to raise prices on its plans by about $1 to $2 a month in five markets including the UK, Australia and Pakistan by the end of April, Bloomberg News reported on Wednesday, citing people familiar with the matter.

Shares of the Swedish music streaming service rose more than 5% in early trading.

Spotify will raise prices in the United States, its largest territory, later this year, according to the report.

The company is also going to introduce a new basic tier that will offer music and podcasts — but not audiobooks — for the current $11 monthly price of an individual premium plan, the report said.

Read also: Spotify to let audiobook authors market like musicians

The new basic tier is the first of what will be several new pricing options from Spotify, the report added.

Spotify declined to comment on the report, when contacted by Reuters.

CEO Daniel Ek said earlier in February the company has "plenty of levers to pull, including price increases," adding the investments in the podcasts were a drag on the business in 2023.

On a monthly basis, the company offers premium plans including $10.99 for an individual, $14.99 for duo and $16.99 for family in the US, according to the company's website.

Under the new pricing, individual plans will go up by about $1 a month, while family plans and so-called duo plans for couples will rise by $2, the Bloomberg report added.