Bryan Erickson/BI
- Spotify is launching an extra-premium subscription for better audio and playlist tools.
- The new tier will cost users at least $5 more monthly, with pricing varying by base plan.
- Spotify faces competition from Amazon Music, Apple Music, and Tidal.
Spotify is planning to launch a more expensive premium subscription later this year for users who want extra-good sound quality, a person familiar with the plan told Bloomberg.
Users will be charged at least $5 more every month for a plan that allows better audio and new playlist organization tools.
The option will be offered as an upgrade and will not affect existing subscription plans. The new tier's pricing will vary depending on each user's base plan but will average out to about 40% more than the current price, according to the person.
Spotify did not immediately respond to Business Insider's request to confirm the news, sent outside standard working hours.
Among the new features is access to high-fidelity audio, which Spotify first announced in 2021 but has repeatedly delayed. The streamer is competing with Amazon Music Unlimited, Apple Music, and Block-owned Tidal for the attention of those who prioritize sound quality. All of those platforms are priced similarly to Spotify's current individual plan and offer high-fidelity, or "lossless," audio already.
Users who pay for the new tier will also be able to instantly generate custom playlists for certain activities and times of the year. Spotify will learn the user's preferences and, eventually, create customized playlists without prompting, Bloomberg reported.
The company raised its prices for US subscriptions by up to $3 earlier this month.
It was Spotify's second time adjusting prices in a year as it faces competition from other music streaming platforms. Big Tech is also competing for ears: YouTube is courting podcast listeners, and Amazon's Audible and Spotify are squaring off in audiobooks.
But Spotify is faring well among these challenges. It reported record profitability last quarter and its stock is up 64% this year.