Spotify will introduce a new tier later this year for users who want high-fidelity audio and access to additional playlisting tools, Bloomberg reports. Those extra features will come at a cost: At least $5 extra per month, according to Bloomberg.
This follows the streamer’s June announcement that the cost of Spotify’s premium individual and duo plans in the U.S. will both increase a dollar (to $11.99 a month and $16.99 a month, respectively). In addition, the family plan will jump $3 ($19.99 a month).
In a statement, a representative for Spotify said the platform is “constantly exploring ideas to improve our product offering and offer value to users.” “We don’t comment on speculation around possible new features,” the rep added, “and do not have anything new to share at this time.”
For years now, music consumption has been based on a one-size-fits-all model: Listeners pay a fixed price and get access to everything. This approach is increasingly under attack, because it limits the amount of money that rightsholders can earn from the biggest music fans. Artists, labels, and streaming services believe they are leaving money on the table.
Tapping that pool of cash might help counter the slowing growth of streaming in major markets that are nearing subscription saturation. The U.S., a country of 127 million households, now has a 12-month average of 96.8 million on-demand subscriptions. Labels rely heavily on new subscriptions to grow revenue: Paid subscriptions accounted for 79.4% of that growth in 2023. In contrast, ad-supported streaming accounted for only 4.6% of annual growth.
In this climate, rightsholders are trying to figure out how to allow “passionate fans to self-select into pricier options,” as former Spotify chief economist Will Page wrote earlier this year.
