SPOTIFY Technology is looking to charge as much as US$5.99 a month on top of existing subscriptions for a new super-fan streaming service that will include higher-quality audio, remixing tools and access to concert tickets, sources familiar with the matter said.
The company hopes to roll out the Music Pro tier later this year, said the sources, who asked not to be identified because the plans are confidential. The pricing and timeline are not set because Spotify is still working through the details and does not have rights from all of the major music companies, they said. Prices for Music Pro will vary by geography, with the cost lower in less-developed markets.
Subscribers will be able to mix together songs from different artists. Some of those features will utilise artificial intelligence, the sources said. Spotify is also testing various ways to sell concert tickets, such as giving fans access to presales or better seats. It has held preliminary talks with major promoters and ticket sellers but has yet to finalise its plans.
A Spotify spokesperson declined to comment.
Having charged the same price for a large library of music in many major markets for most of its existence, Spotify management sees the opportunity to both raise prices and offer different packages and plans for different kinds of listeners, believing the most ardent fans will pay more.
The company is developing Music Pro at the same time it has raised prices for existing subscriptions and created a new offering built around audiobooks. Its current US plans range from US$5 a month for students to US$20 a month for families.
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Major music companies are pushing streaming services to charge more for different features as growth in major markets such as the US slows. US recorded music sales grew 4 per cent in the first half of last year, the slowest pace in almost a decade.
Spotify had its best year of user growth in 2024 and posted an annual profit for the first time. Most of its new users came from markets in Asia, Latin America and the Middle East, as opposed to more developed markets such as North America and Europe.
Streaming services and record labels both see an opportunity to target the most dedicated fans of musicians, consumers who spend on merchandise, concert tickets and fan clubs. While this more expensive offering will not appeal to all users, the company believes it will attract millions of customers.
Stockholm-based Spotify has been working on a super-premium tier for a couple of years and has sought to secure the rights from music companies for new initiatives.
Apple Music and Amazon Music Unlimited already offer higher-quality audio, and services such as Tidal and SoundCloud offer some remixing tools. Yet Spotify is the biggest audio service by a wide margin, with 675 million users and more than 250 million paying subscribers.
Spotify plans to roll out the plan in phases, adding tools and features over time, the sources said. It will test many options over the course of this year. BLOOMBERG
