An industry source familiar with the matter has tipped off Reuters that Spotify is on the verge of launching a higher-priced subscription tier. This isn’t the first time we’ve heard whispers of a more expensive plan, but the latest intel suggests it’s nearing fruition.
The new tier is expected to feature HiFi audio streaming (lossless audio streaming) and provide subscribers with enhanced tools for curating playlists and managing their music libraries. The cost is projected to be around $5 higher than current plans, though this could vary by region. This represents a roughly 40% price hike for most markets.
In a recent move to boost its bottom line, Spotify increased its US subscription rates. The single plan saw a $1 rise, while the Duo and Family plans went up by $2 and $3 respectively.
The announced price increase is exclusive to the US, but it’s plausible that other markets could see similar changes in the future. Spotify’s subscription rates in Pakistan have also recently been adjusted, with the family plan now priced at Rs. 579 per month, up from Rs. 479. However, this increase pales in comparison to the recent US hike, suggesting that any further increases in Pakistan are likely to be more modest.
In the wake of the US price increase, Spotify’s subscription cost now surpasses that of Apple Music, which continues to charge $10.99 and $16.99 for its individual and family plans, respectively.
Interestingly, Spotify’s recent price adjustment could potentially prompt its main competitor, Apple, to revise its pricing structure to match Spotify’s. This is a common tactic in competitive markets where companies often align their pricing strategies.