Spotify is set to introduce a new premium plan, surpassing its current Premium offering, which has been rumored for years.
Often referred to as “Supremium,” this plan is anticipated to deliver higher quality streaming and enhanced features. The official confirmation came during Spotify’s latest earnings call, where CEO Daniel Ek outlined the company’s future plans.
Ek described the forthcoming plan as a “deluxe version of Spotify” with an estimated price point of $17 to $18. This new tier will offer all the benefits of the standard Spotify service but with greater control and superior quality across the board. While the plan is still in its early stages, its announcement has generated significant anticipation among music enthusiasts.
In addition to the new plan, Spotify shared impressive growth figures for the second quarter of this year. The company reported 246 million paying subscribers from April to June, marking a 12% increase compared to the same period in 2023.
This growth included an addition of 7 million paying subscribers, surpassing the company’s guidance by 1 million. As a result, Spotify shares experienced a 14% rise in pre-market trading earlier today.
The total number of monthly active users reached 626 million, a 14% increase from the year-ago quarter. During the earnings call, Ek emphasized Spotify’s commitment to using ad-supported free plans in developing markets.
He noted that user engagement in these regions differs from more developed markets, and the conversion rate from free to paid subscriptions can be slower. To address this, Spotify plans to intensify its marketing efforts and enhance the perks offered in its free tier to attract more users in these areas.
With the upcoming launch of its high-end plan and the continuous growth of its subscriber base, Spotify is poised to strengthen its position as a leader in the music streaming industry. The company’s strategic focus on diversifying its offerings and expanding its market reach underscores its dedication to providing a superior listening experience for users worldwide.