The CEO of Spotify has suggested the introduction of a deluxe tier with improved quality, although it will come at a significantly higher cost than your current subscription.
At the earnings call on July 23, CEO Daniel Ek emphasized that Spotify is developing a premium-tier that will surpass its current offerings. He did not disclose a specific timeframe for the release of this new tier, stating that it is still in the initial stages.
According to The Hollywood Reporter, CEO Daniel Ek stated that the deluxe version of Spotify would most likely cost around $17 or $18, offering all the same benefits as the regular version but with additional features and improved audio quality.
The monthly price for Spotify Premium is $11.99, while Spotify Duo is priced at $16.99 per month. The Family plan, which allows for multiple users, costs $19.99 per month.
Ek did not disclose the details of the high-quality features we can anticipate from the upcoming tier. However, a leak on Reddit uncovered that a new tier is set to be released soon, which will include a hi-res audio feature called Spotify Lossless.
Despite increasing prices twice this year, the streaming giant is hopeful that the new tier will be successful. The company has experienced significant growth, reaching 246 million paying subscribers in the second quarter of 2024, a 12 percent increase from the previous year, as stated in details disclosed during the second quarter’s earnings call, available in the earnings report.
Despite missing the earlier target of 631 million, the company’s monthly active users grew by 14 percent year-over-year to 626 million. Additionally, the total number of paid subscribers surpassed the forecast by one million, increasing by seven million. As a result, Spotify’s shares saw a 14 percent increase in pre-market trading on Tuesday.
Based on this trend, it can be inferred that Spotify users are not deterred by expensive prices. However, many users, including ourselves, may be hesitant to lose their valuable playlists.
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