Spotify is preparing to introduce a new, higher-priced premium plan for its users later this year.
Users will be charged at least $5 more per month for access to better audio and new tools for creating playlists and managing their song libraries according to a source at Bloomberg.
Details
The new option will exist as an add-on for existing customers. The new tier’s pricing will vary depending on each user’s base plan but will average out to about a 40% markup according to the source.
New Features
Some of the perks for upgraded subscribers include access to high-fidelity audio which Spotify had announced in February 2021 but has since failed to rollout.
Subscribers to the new tier will also be able to instantly generate custom playlists for certain activities, dates, and times of the year. The playlists will learn and adapt to each user based on their behavior and eventually develop playlists without prompting.
Zoom Out
The plan for the new subscription tier comes after price hikes for Spotify users around the world. Just last week, the company said it would raise prices in the US by $1 per month in July, bringing its standard paid tier up to $11.99 a month.
It increased the subscription price last year to $10.99 a month from $9.99 after not having touched its price for more than 10 years.
Why This Matters
For Spotify, the premium plan could generate hundreds of millions of dollars in additional revenue, which would then be shared with music rights holders.
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