In this photo illustration, the Spotify music app appears on a mobile phone on June 4, 2024 in New York City. Spotify announced that it will increase the price of the Spotify Premium Personal plan by $1, from $10.99 to $11.99 per month, and the price of the Premium Family plan by $3, from $16.99 to $19.99 per month.
Michael M. Santiago | Michael M. SantiagoGetty Images
Spotify Bloomberg News will launch a new expensive plan for its most ardent users later this year report on Tuesday, a person familiar with the matter was quoted as saying.
According to the report, the audio streaming giant’s new plan will be an add-on service for existing users, which may cost an extra $5 per month to get better audio and new tools for creating playlists and managing song libraries.
Spotify declined to comment. Shares of the Swedish company were up nearly 1% in early U.S. trading.
A week after the report was released increase price After reining in marketing costs, the company launched premium plans in the U.S. to boost profit margins.
Pricing for the new tiers will vary based on each user’s base plan, but the average increase is expected to be about 40%, the report said, adding that upgraded users will have access to Spotify’s high-fidelity (HiFi) audio.
In 2021, Spotify announced the launch of a HiFi audio feature that would allow premium users in specific markets to upgrade their sound quality, but the launch has reportedly been delayed.
Spotify Premium Subscribers increased In the first quarter ended March 31, it increased 14% year-on-year to 239 million. The number of monthly active users is expected to be 631 million in the second quarter.
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