Music Pro: Premium Tier Aimed at Super-Fans
Spotify Technology SA is reportedly planning to launch a new premium subscription tier, “Music Pro,” later this year, offering a suite of enhanced features for super-fans. The new tier could cost as much as USD5.99 (RM27) per month on top of existing Spotify subscriptions, according to sources familiar with the matter. This is based on current exchange rates and may fluctuate. Pricing will vary by region, with lower costs in less-developed markets. This aligns with previous reports, including confirmation from Spotify CEO Daniel Ek last July that a new “Deluxe” subscription was in development, with the possibility of a premium charge for current subscribers to access it.
Music Pro aims to cater to Spotify’s most dedicated users with a range of perks, including higher-quality audio, remixing tools, and exclusive access to concert tickets. The remixing tools will reportedly leverage artificial intelligence, allowing subscribers to create unique mixes of tracks from different artists. Spotify is also exploring various ticketing options, such as presales and preferred seating, and is in discussions with major promoters and ticket sellers.
Launch Timeline and Pricing Still in Flux
While the exact pricing and launch timeline are still subject to change due to ongoing negotiations with major music labels, Spotify hopes to roll out Music Pro in phases throughout the year, adding new features and tools as they become available. The company is currently testing various options and gathering feedback.
Spotify Seeks Revenue Diversification
This move comes as Spotify seeks to diversify its revenue streams and capitalise on its growing user base. The company recently reported its best year of user growth in 2024 and achieved its first annual profit. Much of this growth has originated in developing markets in Asia, Latin America, and the Middle East.
Spotify’s push into the premium tier market reflects a broader industry trend. With growth slowing in mature markets like the US, where recorded music sales saw their slowest growth in nearly a decade, streaming services and record labels are looking for new ways to monetise their content and engage with their most passionate fans. These “super-fans” are seen as a key demographic, often spending heavily on merchandise, concert tickets, and fan club memberships.
Spotify’s Advantage and Competition
While competitors like Apple Music and Amazon Music Unlimited already offer high-fidelity audio and services like Tidal and SoundCloud provide some remixing capabilities, Spotify’s dominant market share, with 675 million users and over 250 million paying subscribers, gives it a significant advantage.
The company believes that the Music Pro tier will attract millions of subscribers willing to pay for the enhanced features and exclusive access. Spotify is also working to secure the necessary rights from music companies for these new initiatives.
