Spotify jumps 8% on report it plans to raise prices

Spotify stock closed up 8% on Wednesday after a Bloomberg report said the company will increase prices for its premium subscription service in several markets, including the U.S., for the second time in a year.

The Swedish music-streaming company will hike prices in the U.S. later this year, Bloomberg reported Wednesday, citing people familiar with the matter. Spotify will raise monthly prices by the end of April by about $1 to $2 in five markets including the United Kingdom, Australia and Pakistan, according to Bloomberg.

Bloomberg reported that the higher prices will help the company cover the costs of its audiobook service, which offers 15 hours of audiobook listening time per month for subscribers.

Spotify will also launch a new basic subscription tier for $11 per month, the same price as the premium plan currently costs, Bloomberg reported. The basic tier will include music and podcasts, but not audiobooks, and will be among the first of multiple newly priced subscription plans that will be introduced, per the report.

Spotify declined to comment on Bloomberg’s report.

Last year, the audio company raised prices by as much as $2 for its premium subscription in the United States and several other countries. Spotify, which competes with streaming services from Apple, Amazon and YouTube, has struggled to achieve profitability over the years.