Spotify Technology SA (SPOT.N) is planning to increase prices on its subscription plans by approximately $1 to $2 per month in select markets, including the UK, Australia, and Pakistan, by the end of April. This move comes as the company seeks to adjust its pricing strategy and generate additional revenue. The news of the price hike caused Spotify’s stock to rise more than 5% in early trading.

While the price increase will initially affect these markets, Spotify also plans to raise prices in the United States, its largest market, later this year. Additionally, the company intends to introduce a new basic tier that will provide access to music and podcasts (excluding audiobooks) at the current monthly price of $11 for individual premium plans.

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This new basic tier is the first of several pricing options that Spotify is expected to roll out. The company has not yet commented on the reported price adjustments.

Spotify’s CEO, Daniel Ek, previously mentioned in February that the company has various strategies at its disposal, including price increases, to address financial challenges. He highlighted that investments in podcasts had weighed on the business in 2023.

Currently, Spotify offers premium plans at different price points, such as $10.99 for individual plans, $14.99 for duo plans, and $16.99 for family plans in the US. Under the proposed pricing changes, individual plans will see an increase of about $1 per month, while family and duo plans will rise by $2 per month.