Spotify confirms reports that it intends to increase rates

Spotify will raise the price of its premium membership service for the second time in a year in a number of territories, including the U.S., the company’s shares surged 6% on Wednesday.

The Swedish music-streaming business will increase pricing in the United States later this year. According to someone with knowledge, Spotify plans to increase monthly subscription fees in five markets—including the UK, Australia, and Pakistan—by about $1 to $2 by the end of April.

The increased charges will assist the business in defraying the costs of its audiobook service, which provides customers with 15 hours of audiobook listening time each month.

Spotify will also introduce a new basic membership tier for $11 a month, which is the same amount that the premium plan presently charges. According to the article, the entry-level plan will be one of several freshly priced subscription packages that will be unveiled. It will feature music and podcasts, but not audiobooks.