In a recent report by Bloomberg, it has been revealed that Spotify, the world's largest paid streaming service, is set to raise the price of its subscription service in multiple overseas markets by the end of April 2024. The U.S., its largest territory, will also see a price increase later this year.

According to sources familiar with the matter, Spotify will raise prices by approximately $1 to $2 a month in five markets, including the U.K., Australia, and Pakistan. Individual plans will see a monthly increase of about $1, while family plans and duo plans for couples will rise by $2.

This decision comes as Spotify continues to face challenges in terms of profitability. The company pays out billions of dollars in royalties to major music companies and rights holders each year, resulting in a struggle to achieve sustainability. In 2023 alone, Spotify paid out $9 billion in royalties on $13.2 billion in revenue.

The move to increase subscription prices follows a trend in the industry, with Spotify's competitors making similar adjustments. Studies have shown that consumers are generally willing to pay more for music-streaming subscriptions, prompting Spotify to provide additional value for any price increase. Some recent offerings include early access to new music and other fan-centric options.

Interestingly, the report mentions that Spotify will introduce new pricing tiers, including a "supremium" plan that offers high-fidelity audio at a higher price. However, the company had previously sidelined such efforts a couple of years ago.

Spotify, which recently introduced audiobooks as part of its paid plan, aims to cover the cost of this service through the higher subscription prices. Customers currently receive up to 15 hours of audiobook listening per month, and the company collects additional revenue only from those who exceed this limit.

Additionally, Spotify plans to introduce a new basic tier that will offer music and podcasts, excluding audiobooks, under its current plan. The company's attempts to achieve profitability through ventures into video and podcasts have seen limited success.

As of now, Spotify boasts approximately 236 million paying customers, solidifying its position as the world's largest paid subscription service. It is reported that the success of last year's price increase has given the management confidence to pursue further adjustments.

Variety reached out to Spotify for comment but received no response. The company has yet to disclose an exact timeframe for the price increase in the U.S. but intends to implement it later this year.