Spotify CEO reveals plan for more expensive “deluxe” subscription for higher quality
Unsplash: @alexbemoreSpotify’s CEO has hinted at a new deluxe tier with higher quality, but it will cost a lot more than what you’re paying now.
During Spotify’s earnings call on July 23, CEO Daniel Ek made it clear that the company is working on a premium-than-ever tier. Ek didn’t reveal the launch timeline for the new tier, saying it’s in the “early days” right now.
“It’s probably around a $17 or $18 price point, but sort of a deluxe version of Spotify that has all of the benefits that this normal Spotify version has, but a lot more control, a lot higher quality across the board,” Ek said, according to The Hollywood Reporter.
Spotify Premium costs $11.99 a month, while the Spotify Duo is $16.99 a month. The Family tier costs $19.99 a month and supports multiple users.
Unsplash: @haithemfrd_offEk didn’t reveal what high-quality features should we expect from the coming tier. However, a leak on Reddit revealed a potential new tier is going to launch soon with a hi-res audio feature known as Spotify Lossless.
The new tier might just work for the streaming giant. Even after raising prices twice this year, the company has seen impressive growth. It reached 246 million paying subscribers in the second quarter of 2024, up 12 percent year-over-year, according to details shared in the second quarter’s earnings call.
The total number of paid subscribers jumped by seven million, beating the forecast by one million. Spotify’s shares were up 14 percent in pre-market trading on Tuesday. The company’s monthly active users grew 14 percent year-over-year to 626 million, but that missed the earlier target of 631 million.
This trend suggests that Spotify customers don’t fear high prices, but, if you’re anything like us, you’ll be afraid of losing all of your precious playlists.