According to an insider, Spotify will introduce a new, more expensive premium subscription plan this year that will finally include lossless digital music is available. Users will pay at least $5 more for better quality audio and new playlist creation and library management tools.
Spotify will position Hi-Fi as an additional option — it’s not a replacement for any tariffs. Users will remain on their current plans unless they choose to upgrade. The total price will depend on the basic plan, but a 40% markup is expected. Earlier this week, Spotify shares rose by 2.9%.
Spotify announced Hi-Fi audio back in February 2021but the rollout has not yet taken place. Most other music streaming services already offer higher quality audio.
The rumors about the new subscription tier came after Spotify raised prices for its users in many countries.Last week, the company said it would raise prices in the US by $1 per month in July — to $11.99 per month. Last year, the price in the U.S. already went up by $1, to $10.99, after remaining unchanged for more than 10 years.
The new premium plan could add hundreds of millions in revenue to Spotify, which would then be shared with music rights holders. It is not yet known what percentage of users are interested in the new plan and whether music authors will receive additional payments.
Also, subscribers of the new plan will be able to instantly create their own playlists for certain activities, dates, seasons, etc. The playlists will adapt to each user depending on their behavior, and over time, they will be able to be created without prompts.
Source: Bloomberg