Spotify to Launch Premium Plan with Enhanced Features
Updated: Aug 26
Spotify is set to launch a new premium plan later this year, offering improved audio quality and enhanced tools for playlist creation and library management. The plan will be an add-on for existing users and is expected to cost an additional US$5 per month. Spotify's stock rose nearly 1% following the news of the upcoming premium plan.
The plan, which will be an add-on for existing users, is expected to come with a higher price tag of US$5 per month, offering access to improved audio quality and a range of fresh tools for playlist creation and library management.
While Spotify has declined to comment on the matter, the news has already had a positive impact on the company's stock, with shares rising nearly 1% during early U.S. trading.
This announcement comes just a week after Spotify raised prices for its premium plans in the United States, a move aimed at boosting profit margins while simultaneously reducing marketing costs.
The pricing for the new premium tier will vary depending on each user's base plan, but it is estimated to average out to a 40% increase. Subscribers who opt for the upgraded plan will also gain access to Spotify's high-fidelity (HiFi) audio, a feature that was initially announced in 2021 but faced delays in its rollout.
Spotify's premium subscriber base saw a significant increase of 14%, reaching 239 million in the first quarter of this year compared to the same period last year. The company is projecting a monthly active user count of 631 million for the second quarter.
Spotify is set to launch a new premium plan later this year, offering improved audio quality and enhanced tools for playlist creation and library management.
The plan will be an add-on for existing users and is expected to cost an additional US$5 per month.
Spotify's stock rose nearly 1% following the news of the upcoming premium plan.
Source: REUTERS
