The fee will be approximately US$5 per month.
Based on a recent Bloomberg article, streaming platform Spotify is planning to offer an upgraded service with high-fidelity audio, described as an add-on to current users, with a cost of at least US$5 per month for the new service tier.
The article also mentioned that the majority of Spotify’s current premium subscribers, who enjoy ad-free listening on the digital music platform, are anticipated to keep their existing plans.
This news follows the company’s announcement earlier this month about increasing the prices for its premium service in the United States The monthly cost for an individual subscription will now be US$11.99, up from US$10.99. The duo plan will rise to US$16.99 per month from US$14.99, while the family plan will increase to US$19.99 from US$16.99.
In an email quoted by Reuters, Spotify justified the price hikes, stating they will enable the company to invest in improving its products and features. The Swedish-based platform has also recently cut back on marketing expenses and reduced its workforce to improve profit margins.
In April, Spotify reported a quarterly gross profit exceeding 1 billion euros for the first time, although the reduced marketing expenditure impacted the number of its monthly active users.
Read the Bloomberg article here.
