Spotify (NYSE:SPOT) plans to raise prices for its audio service in key markets for the second time in a year, according to a Bloomberg report on Wednesday.
The move is being made to achieve long-term profitability. The streaming giant will increase prices by about $1 to $2 a month in five markets by the end of April.
Citing sources, Bloomberg said the markets include the UK, Australia, and Pakistan.
Spotify is set to raise prices in the US later this year, added the publication.
The price raise is said to help the company cover the cost of audiobooks, with Spotify currently offering customers up to 15 hours of audiobook listening a month as part of the paid plan.
Furthermore, Bloomberg said the company will soon be offering a new basic tier that will provide music and podcasts for a monthly price of $11. The new plan, however, will not include audiobooks. The new tier will be the first of several new pricing options from Spotify, with a “supremium” plan also in the works.
