NEWS  Apps  April 4, 2024  Reading time: 2 Minute(s)

Max (RS editor)

Spotify has announced yet another price increase for its Premium subscription, making it costlier than some of its key rivals for the first time. This move comes shortly after Tidal's reduction in the price of its "HiFi Plus" subscription to $10.99 per month, adding more pressure on Spotify's pricing strategy. However, alongside the price hike, Spotify is restructuring its subscription plans, aiming to offer more options to users while maintaining its revenue streams.

Last fall, Spotify upped the price of its Premium subscription from $9.99 to $10.99 per month. Now, as per reports from Bloomberg, another increase ranging from $1 to $2 per month is slated to hit at least five markets, including Australia, the UK, and Pakistan by the end of April. Further expansions of the price hike are expected later in the year, including in the lucrative US market. This strategic move aims to shore up Spotify's financials, especially after the company reported a significant loss despite generating substantial revenue in 2023.

To mitigate potential subscriber backlash, Spotify is introducing a new subscription tier, dubbed "Basic", which offers access to music and podcasts but excludes audiobooks. Priced at the current Premium subscription rate of $10.99 per month, this tier provides a more affordable option for users who can forgo audiobook streaming. Notably, the Premium subscription currently includes 15 hours of audiobook streaming per month, which users of the Basic tier would need to purchase separately.

Moreover, Spotify is rumored to be exploring a higher-priced tier, tentatively named "Supremium", targeting audiophiles by offering music in hi-fi quality. However, the success of such a move remains uncertain, given that competitors like Apple Music and Tidal already offer hi-fi quality at no additional cost. These developments underscore Spotify's strategic efforts to diversify its subscription offerings and cater to varying consumer preferences while maintaining competitiveness in the market.

The music streaming landscape has become increasingly crowded, with rivals vying for market share by offering diverse content libraries and competitive pricing. Spotify's decision to raise prices while concurrently adjusting its subscription structure reflects a broader trend within the industry, where companies are seeking innovative ways to balance revenue growth and subscriber retention.

 IMAGES CREDITS: FREEPIK / REVIEW SPACE | SPOTIFY