Tags: spotify | subscription | music | streaming

Spotify to Introduce More Expensive Plan Later This Year

Spotify to Introduce More Expensive Plan Later This Year
(Jonathan Raa/AP)

Tuesday, 11 June 2024 10:33 AM EDT

Spotify will introduce a new expensive plan for its most ardent users later this year, Bloomberg News reported Tuesday, citing a person familiar with the plan.

The audio-streaming giant's new plan, which will be an add-on for existing users, is likely to cost $5 more per month for access to better audio and fresh tools for creating playlists and managing song libraries, the report said.

Spotify declined to comment. Shares of the Swedish company rose nearly 1% in early U.S. trading.

The report comes a week after the company raised prices for its premium plans in the United States, in a push to boost margins, after it reined in marketing costs.

The new tier's pricing will vary as per each user's base plan but it is expected to average out to about a 40% markup, the report said, adding the upgraded subscribers will get access to Spotify's high-fidelity (HiFi) audio.

In 2021, Spotify announced the HiFi audio feature to let premium subscribers in select markets upgrade their sound quality, but according to the report its rollout was delayed.

Spotify's premium subscribers rose by 14% to 239 million in the first quarter ended March 31 from a year earlier. It forecast monthly active users at 631 million for the second quarter.

© 2024 Thomson/Reuters. All rights reserved.


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Spotify will introduce a new expensive plan for its most ardent users later this year, Bloomberg News reported Tuesday, citing a person familiar with the plan.
spotify, subscription, music, streaming
210
2024-33-11
Tuesday, 11 June 2024 10:33 AM
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