- Spotify is said to be launching an extra-premium subscription for better audio and playlist tools.
- A source told Bloomberg the new tier would cost users at least $5 more monthly, varying by base plan.
Spotify is launching a more expensive premium subscription later this year for users who want extra-good sound quality, a person familiar with the plan told Bloomberg.
The person said users would be charged at least $5 more every month for a plan that allows better audio and new playlist organization tools.
The option is expected to be offered as an upgrade that won't affect existing subscription plans. The person said the new tier's pricing would vary depending on each user's base plan but would average out to about 40% more than the current price.
Spotify didn't immediately respond to a request from Business Insider, sent outside standard working hours, to confirm the news.
High-fidelity audio, which Spotify first announced in 2021 but has repeatedly delayed, is said to be among the new features. 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 already offer high-fidelity, or "lossless," audio.
The new tier is also expected to allow users to instantly generate custom playlists for certain activities and times of the year, with Spotify learning the user's preferences and, eventually, creating customized playlists without prompting.
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.