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Spotify (NYSE: Spot) revealed additional subscription plans on Friday as the music streaming service differentiates itself from rivals with its audiobook offerings.
Spotify launches Basic and Premium plans, with the Premium plan providing 15 hours of audiobook listening time per month A catalog of over 250,000 songs plus unlimited ad-free music.
The price difference is small, with the Premium Personal version priced at $11.99 per month and the Basic version at $10.99 per month. Spotify also now offers an audiobook plan, which offers 15 hours of audiobook listening and ad-supported music for $9.99 per month.
Spotify, Apple (AAPL) Music, Amazon (AMZN) Music Unlimited and Google (GOOG) (GOOGL) YouTube Music offer streaming music subscription plans that are fairly similar in price.
They offer student plans ranging from $5.49 to $5.99 per month, individual plans around $10.99 per month, and family plans ranging from $16.99 to $19.99 per month.
However, Amazon Music Unlimited offers slightly cheaper individual plans at $9.99 per month and single-device plans at $5.99 per month.
Even though Spotify plans cost slightly more than some other music streaming services, the Sweden-based company continues to expand its subscription base.
Its latest financial performance shows that monthly active users increased by 23% year-on-year, and subscribers increased by 14%.
Seeking Alpha analyst and contributor Noah’s Arc Capital Management said: “The company implemented strategic price adjustments to grow revenue without blocking new subscriptions, demonstrating strong pricing power. “Despite challenges in maintaining profitability, Spotify’s price increases and user engagement strategies are expected to sustain growth and improve profitability going forward. “
According to Statista, Spotify dominates other major music streaming services, accounting for about 31% of the global market share, which is only slightly lower than Apple Music, Amazon and YouTube Music combined.
Spotify has a massive user base of 615 million monthly active users and nearly 300 million subscribers, which it maintains across its multiple products, including music, podcasts and audiobooks.
Analysts are mostly bullish on Spotify, with both Seeking Alpha and Wall Street analysts giving the company a buy rating. The company has a Strong Buy rating from Seeking Alpha’s quantitative system, which regularly beats the market.
Its share price has Soared 70% So far this year, it has more than doubled in the past 12 months.
