Spotify Technology SA SPOT announced on Friday that it is introducing a new “Basic” streaming plan in the U.S. The new plan costs $10.99 per month and includes all of the benefits of a Premium plan but without the monthly audiobook listening time.
The new streaming plans were launched a few weeks after Spotify increased the price of its Premium plan from $10.99 to $11.99.
Related: Spotify Turns Up The Volume On Pricing, Premium Plans See A Hike
The higher prices would help the streaming service cover the cost of audiobooks, TechCrunch reports. This new plan is ideal for users who don’t utilize the monthly 15 hours of audiobook listening with the Premium plan.
The streaming giant is reportedly developing a “Supremium” plan that will include high-fidelity audio and cost at least $5 more monthly.
In April, Spotify reported a quarterly gross margin of 27.6%, implying a growth of 243 bps, reflecting improved podcast and music profitability.
Analysts predict accelerated revenue growth in 2024, driven by increased Premium Subscribers benefiting from the shift to access-based streaming models. They praised Spotify’s capability to boost revenue and enhance profitability through effective pricing strategies.
Spotify stock gained over 100% in the last 12 months. Investors can gain exposure to the stock via SPDR Portfolio Developed World Ex-US ETF SPDW and iShares Russell 1000 ETF IWB.
Price Action: SPOT shares were trading higher by 0.65% at $315.93 at the last check Friday.
Also Read: Spotify Challenges YouTube, Adds Video Support For All Platform Podcasters
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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