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Spotify is gearing up to introduce a new super-premium subscription tier tailored for audio enthusiasts, which will set subscribers back an additional $6 per month. According to three insiders, this move is part of Spotify’s strategy to broaden its streaming horizons.
The new tier, priced at $18 monthly, is set to launch later in the year. This follows Spotify’s fresh licensing agreements with Universal Music and Warner Music, granting access to songs from high-profile artists like Kendrick Lamar and Taylor Swift within the subscription. However, no renewed deal with Sony Music, home to big names such as Beyoncé, has been announced yet. A source suggests we might not see this new subscription until autumn.
Dubbed “Music Pro,” this subscription will roll out with three enticing features: superior audio quality, early access to concert tickets, and enhanced functionality such as a “DJ” mode for streaming. The concert ticket feature forms a significant part of the music industry’s strategy to monetize “superfans”—those passionate listeners who consistently purchase merchandise and attend live shows for their favorite stars.
Meanwhile, Spotify finds itself competing with Apple Music and Amazon Music, both of which already offer higher-quality “lossless” audio as part of their standard paid plans. Although Spotify has teased about its own high-definition audio product since 2021, its release has faced multiple setbacks.
The company has been on a positive trajectory recently, celebrating its first full year of profitability after significant cost-cutting measures, including layoffs. Spotify’s stock has seen an impressive rally, nearly tripling over the past year, which has been warmly received by investors.
At a valuation of $130 billion, Spotify’s market cap surpasses that of all three big record labels combined. During recent negotiations, these labels pushed for more lucrative deals with Spotify.
Spotify CEO Daniel Ek recently hinted at the new subscription tier during an earnings call. He noted that this shift would help tailor Spotify’s offerings more specifically to various audience segments. “The next version of the music industry, I believe, is one where we’re going to tailor the experience of Spotify to all of these different subgroups,” he explained, underscoring a move from a one-size-fits-all model to more specialized tiers as their consumer base grows into the hundreds of millions.
As part of the arrangements with Universal and Warner, Spotify also plans to integrate more professional music videos into its platform, ramping up its competition with YouTube, TikTok, and others.
According to analysts at Deutsche Bank, this super-premium tier could potentially become a significant revenue driver for Spotify. However, Midia Research offers a more cautious perspective. Analyst Mark Mulligan argues, “You could make a case that a superfan tier is disruptive innovation, but that will depend upon whether it really pushes the boundaries of what streaming is.” Essentially, it remains to be seen if this tier will truly disrupt the market, or if it will simply mirror premium plans seen in other industries.
