Spotify Technology SA is set to launch a new premium plan later this year, which will offer a higher-priced option for its most dedicated users. This new tier will include better audio quality and new tools for playlist creation and song library management, with users expected to pay at least $5 more per month for these added features.
The new premium plan will be positioned as an add-on for existing customers, allowing most users to remain on their current plans while giving those who choose to upgrade access to additional perks. The pricing for the new tier will vary depending on each user’s base plan, but on average, it will represent a 40% markup. This move is part of Spotify’s strategy to create multiple price points for different types of users.
One of the key benefits of the upgraded subscription will be access to high-fidelity audio, a feature that Spotify had announced earlier but delayed the rollout. With competitors like Amazon Music and Apple Music already offering higher-quality audio as part of their standard plans, Spotify is looking to attract users who are willing to pay more for a premium listening experience.
The introduction of the new premium plan comes on the heels of recent price hikes for Spotify users globally. The company announced a $1 increase in its standard paid tier in the US, bringing the monthly subscription cost to $11.99. This is the second price increase in the last year, following a jump from $9.99 to $10.99 per month.
The premium plan is expected to bring in significant additional revenue for Spotify, which will be shared with music rights holders. However, it remains to be seen how many users will be willing to pay more for features like playlisting tools and higher fidelity audio. While high-quality audio has not driven a significant increase in users for other services, Spotify is betting on the appeal of personalized playlists and enhanced audio quality.
In addition to better audio quality, subscribers to the new tier will also have access to custom playlists tailored to specific activities, dates, and times of the year. These playlists will learn and adapt to each user’s preferences based on their behavior, creating a more personalized listening experience. Overall, the introduction of the new premium plan is part of Spotify’s efforts to offer a range of options for users while driving additional revenue growth for the company.
