Displayed in this photo illustration, the Spotify music application is observed on a mobile device on June 04, 2024 in New York City. Spotify declared that it will be boosting the cost of its Spotify Premium Individual plan by $1, from $10.99 to $11.99 per month and the Premium Family plan by $3, from $16.99 to $19.99 per month.
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Spotify is set to introduce a new premium plan for its most dedicated users later this year, as reported by Bloomberg News on Tuesday, citing a source familiar with the scheme.
The audio-streaming mammoth’s fresh proposal, which will be an extension for current users, is expected to be $5 more per month for entry to improved audio quality and innovative tools for curating playlists and managing music collections, as per the report.
Spotify chose not to respond. Stocks of the Swedish firm grew nearly 1% in early U.S. trading.
The revelation emerged a week following the company raising rates for its premium schemes in the United States, striving to enhance profits after trimming down advertising expenses.
The pricing for the new level will differ based on each user’s base plan but is anticipated to average around a 40% increase, the report revealed, mentioning that upgraded subscribers will acquire access to Spotify’s high-fidelity (HiFi) audio.
In the year 2021, Spotify introduced the HiFi audio feature to enable premium subscribers in particular markets to enhance their audio quality, although its launch was postponed according to the report.
The number of Spotify’s premium supporters surged by 14% to 239 million in the first quarter ending March 31 from the preceding year. The company anticipated monthly active users to reach 631 million in the second quarter.
