Spotify plans to introduce ‘Music Pro’ tier with higher-quality audio

STOCKHOLM, SWEDEN: Spotify Technology SA is considering introducing a new, premium streaming service called Music Pro, potentially priced as high as $5.99 per month on top of existing subscription costs. This tier would offer enhanced features aimed at super-fans, including higher-quality audio, remixing tools, and access to concert tickets.

The company aims to launch Music Pro later this year, but the pricing and timeline are subject to change as Spotify finalises details and secures necessary rights from major music companies. The price is expected to vary by region, with lower costs in less-developed markets.

Music Pro subscribers will have the ability to mix songs from different artists, with some features utilizing artificial intelligence. Furthermore, Spotify is exploring various methods for concert ticket sales, potentially providing fans with presale access or premium seating options. Discussions with major promoters and ticket sellers have commenced, though concrete plans are not yet finalized.

Spotify’s management believes there’s an opportunity to increase revenue and offer diverse plans catering to different listener preferences, anticipating that dedicated fans will be willing to pay more. This move aligns with recent price increases for existing subscriptions and the introduction of a new audiobook-focused offering. Current US subscription plans range from $5 per month for students to $20 per month for families.

Major music companies are urging streaming services to increase prices for premium features due to slower growth in key markets like the US, where recorded music sales grew by 4% in the first half of last year, the slowest rate in nearly a decade.

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Despite this slowdown, Spotify experienced its best year of user growth in 2024 and reported its first annual profit. A significant portion of this growth came from markets in Asia, Latin America, and the Middle East, in contrast to more mature markets like North America and Europe.

Both streaming services and record labels see potential in targeting devoted music fans who spend on merchandise, concert tickets, and fan clubs. While Music Pro may not appeal to all users, Spotify anticipates attracting millions of customers with this offering.

Spotify, headquartered in Stockholm, has been developing the super-premium tier for several years and has been working to obtain the necessary rights from music companies to implement its new initiatives.

Competitors like Apple Music and Amazon Music Unlimited already provide higher-quality audio, and services such as Tidal and SoundCloud offer remixing tools. However, Spotify holds a significant lead in the audio streaming market, boasting 675 million users and over 250 million paying subscribers.

The company plans to roll out Music Pro in stages, gradually adding tools and features over time, and will conduct extensive testing throughout this year.