Spotify is set to introduce a new premium subscription that offers enhanced audio quality and advanced playlist features at a higher price point. According to a source familiar with the plan, the new tier will cost users at least $5 more per month on top of their current base plan. This move comes as Spotify faces stiff competition from other music streaming platforms like Amazon Music, Apple Music, and Tidal.
The new premium subscription is expected to be launched later this year as an optional upgrade that will not impact existing subscription plans. Pricing for the new tier will vary depending on each user’s base plan, but is estimated to be around 40% more expensive than the current price. High-fidelity audio and new playlist organization tools are among the new features that will be offered in the upgraded subscription.
Spotify has not confirmed these reports and did not respond to requests for comment from Business Insider. The platform had recently raised its prices for US subscriptions by up to $3 in response to increasing competition in the music streaming industry. Despite these challenges, Spotify reported record profitability last quarter and its stock has seen a 64% increase in value this year.
In addition to offering improved audio quality, the new premium subscription is expected to include features that allow users to generate custom playlists for different activities and times of the year. This personalized playlist functionality will be based on user preferences and usage patterns, providing a more tailored music experience for listeners. Spotify’s push towards providing a more robust premium experience reflects the company’s commitment to innovation and keeping up with competitors in the ever-evolving music streaming landscape.