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Spotify to add $5 premium tier for high-quality audio and playlist management

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Spotify is set to launch a new premium subscription tier later this year. This tier will cost at least $5 more per month and is designed for its most loyal users. This new offering will include superior audio quality and sophisticated playlist management tools to provide a more premium listening experience and boost revenue.

First reported by Bloomberg, the new tier cost will vary depending on the user’s base plan, translating to an average increase of around 40%. The new premium plan, internally referred to as ‘Supremium,’ will serve as an add-on for current subscribers, ensuring that most users retain their existing plans while providing an upgrade path for those willing to pay extra.

Of the standout features of this new plan is access to high-fidelity (HiFi) audio, a much-anticipated enhancement Spotify first announced in February 2021 but delayed its rollout. In the interim, competitors like Amazon Music and Apple Music have integrated high-quality audio into their standard offerings, setting a precedent that Spotify now aims to follow.

Subscribers to the new tier can expect other advanced features, including tools for creating custom playlists tailored to specific activities, dates, and times of the year. These playlists will be dynamically generated based on user behaviour and preferences, eventually developing personalised playlists without user input.

Although Spotify plans better music quality and advanced playlist management, it is not certain that users will buy the additional tier.

The introduction of this higher-priced tier marks a significant shift in Spotify’s pricing strategy. Historically, the company has charged a uniform price for its services, regardless of user engagement levels. However, recent trends show Spotify diversifying its pricing models to cater to various user segments. The company has already unveiled AI-generated playlists in beta for Android and iOS users in the UK and Australia.

The timing of this new tier follows a series of global price hikes. In the United States, Spotify announced a $1 per month increase for its standard plan, raising the price to $11.99 starting in July. This comes after last year’s increment from $9.99 to $10.99, the first price adjustment in over a decade.

The new premium tier presents Spotify with a significant opportunity to increase its revenue, potentially adding hundreds of millions of dollars. This revenue will also be shared with music rights holders. However, the plan’s success depends on user uptake; it’s uncertain how any subscribers will choose to pay extra for better audio quality and advanced playlist features, particularly since similar enhancements have not notably boosted subscriber numbers for other services.

Recently, Spotify found itself in a tough spot when users demanded a refund for Car Thing, a device discontinued by the company. Although, initially the company refused, but later decided to go for it.

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Kumar Hemant

Kumar Hemant

Deputy Editor at Candid.Technology. Hemant writes at the intersection of tech and culture and has a keen interest in science, social issues and international relations. You can contact him here: