Spotify is increasing subscription prices in the U.K., Australia, and Pakistan by $1 to $2 to support new audiobook offerings.

The U.S. will experience a similar price hike later in the year.

A new basic subscription tier will be introduced, maintaining the current $11 price but excluding audiobooks.

Spotify is exploring additional pricing tiers, including a high-fidelity 'supremium' plan and is launching Dolby Atmos for spatial audio.

Despite the impending price increases, Spotify saw a strong performance in Q4 of 2023 with a rise in active and premium users.

The announcement of the price hike resulted in an over 8% increase in Spotify's stock value.

There is a potential risk of losing subscribers due to the price hike, particularly among those anticipating high-quality audio offerings.