Spotify Music Pro to offer better audio quality, remixing tools
What's the story
Spotify is said to be planning a new super-premium tier, dubbed Music Pro. The service would cost an additional $5.99/month on top of current subscriptions, as per Bloomberg. It would launch later this year, giving subscribers enhanced audio quality, remixing tools, and concert ticket access. However, the pricing is yet to be finalized as Spotify negotiates with major music companies.
Service details
Music Pro's features and global pricing strategy
The Music Pro tier will enable subscribers to blend songs from different artists using AI. Spotify is also looking at other ways to sell concert tickets, including presales and premium seating options. The company has started talks with major promoters and ticket vendors but hasn't finalized these plans yet. Music Pro will be priced differently in different regions, with lower rates in less-developed markets.
Business evolution
Strategic shift and market response
Spotify's shift toward a super-premium tier is a major change in its business strategy. The company has kept its pricing consistent across major markets for most of its years in operation. Now, it wants to diversify its offerings and serve different kinds of listeners. The move comes as major music companies push streaming services to charge more for unique features, after slow growth in key markets like the US.
Growth trajectory
Spotify's user growth and market expansion
In 2024, Spotify saw its biggest user growth and posted an annual profit for the first time. Most of these new users were from Asia, Latin America, and the Middle East. This is different from more developed markets such as North America and Europe. Both streaming services and record labels see potential in targeting dedicated music fans who can spend on merchandise, concert tickets, and fan clubs.
Market dominance
Competitive edge in the audio service market
Spotify has been working on this super-premium tier for years and is negotiating rights with music companies for the new initiatives. Even though competitors like Apple Music and Amazon Music Unlimited have been offering higher-quality audio, Spotify continues to be the biggest audio service by a huge margin. It has 675 million users and more than 250 million paying subscribers. The firm plans to roll out the new plan in phases, adding tools and features over time.