Spotify (NYSE:SPOT) stock is on the move Wednesday on reports that the music streaming company is going to increase prices this year.
According to these reports, Spotify is looking to bump up prices for its streaming content by $1 to $2 in 2024. The company will allegedly introduce these price increases across five markets including the U.S., U.K., Australia and Pakistan.
The reports say that the U.S. price change will go into effect later this year. This will see the price of individual plans increase by $1 per month while family and duo plans will increase by $2 per month.
Reports also claim that Spotify is going to introduce a new basic plan. This is said to offer access to music and podcasts on the service but not audiobooks, per Reuters.
SPOT Stock: What’s Behind the Price Increase?
If the reports come to fruition and Spotify does increase prices, it will likely be due to the current economy. The cost of goods and services has continued to increase alongside rising inflation. Increased interest rates are also weighing on businesses and causing them to seek out additional ways to increase profits.
SPOT stock is up 5.6% as of Wednesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
