In an exciting development for Spotify, the Swedish music-streaming giant's shares spiked by 8% following reports of an impending price hike for its premium subscription service. According to Bloomberg, Spotify aims to raise prices in the U.S. later this year, a move that will likely boost the company's revenue.

Citing sources familiar with the matter, Bloomberg stated that Spotify will be introducing a new basic subscription tier priced at $11 per month, which is currently the same as the premium plan. This new tier will provide access to music and podcasts, though it will not include the audiobook feature. Additionally, several other newly priced subscription plans are expected to be introduced soon.

The price increase is not limited to the United States alone. Bloomberg also reported that Spotify plans to raise monthly prices by $1 to $2 in five markets, including the United Kingdom, Australia, and Pakistan, with the changes set to take place by the end of April.

The rationale behind these price adjustments, as per Bloomberg's sources, is to help Spotify cover the costs of its audiobook service, which offers 15 hours of audiobook listening time each month for subscribers. By increasing prices, Spotify aims to make its operations more financially sustainable.

This isn't the first time Spotify has raised its prices. Last year, the company raised its premium subscription rates by as much as $2 in multiple countries, including the United States. While this move generated some backlash, Spotify's continued efforts to adapt its pricing strategy highlight its ongoing quest for profitability.

Competing with industry giants such as Apple Music, Amazon Music, and YouTube Music, Spotify has faced challenges in achieving consistent profitability. Nevertheless, the company's decision to adjust prices indicates its determination to find the right balance between offering competitive subscription plans and maintaining a financially viable business model.

As of now, Spotify has not officially commented on Bloomberg's report, leaving room for speculation about its pricing strategy. Nonetheless, the positive market response, with Spotify's stock surging 8% on Wednesday, suggests that investors are optimistic about the potential impact of the price increase.

With the planned price adjustments and introduction of new subscription tiers, Spotify aims to diversify its offerings and cater to a wider range of user preferences. As the company aims to strike the delicate balance between maximizing revenue and attracting and retaining subscribers, its upcoming pricing changes are anticipated with great interest by both industry analysts and music enthusiasts alike.