Music streaming giant Spotify (NYSE:SPOT) is about to adjust its subscription prices in several global markets, including the United Kingdom, Australia and Pakistan, with a scheduled increase of $1 to $2 per month until the end of April. Similar adjustments are expected in the United States later this year, according to information released by Bloomberg. This strategic move mainly aims to absorb the costs associated with the audiobook service introduced by the company last year, marking a new phase in its content diversification.
Emerging details suggest a restructuring in its subscription plans. One of the new features is the launch of a basic plan, offered at US$11 per month, which will include music and podcasts, excluding, however, audiobooks, which will require an additional charge.
The market reaction to these rumors was immediately positive, with Spotify shares experiencing a 6.52% rise to reach $287.16 in recent trading. This increase in shares signals the highest closing value since November 8, 2021, showing investor optimism regarding the company’s growth and profitability prospects.
Spotify is also traded on B3 through BDR (BOV:S1PO34).
This optimism is further reinforced by the financial results released in February, in which Spotify exceeded expectations with a smaller loss than expected and significant growth in the number of subscribers. With an impressive 51% increase in its share value this year, outperforming the S&P 500’s 9.6% growth, the company demonstrates strong momentum in the market.
Spotify’s initiative to review its prices and expand its service offering reflects an adaptation to consumer demands and market trends. As the company ventures deeper into audiobook territory, this price adjustment appears to be a calculated move to cement its position as a comprehensive entertainment platform offering a diverse range of audiovisual content to its global users.
Tags: Spotify prepares price hikes global markets expand audiobook services
