Spotify Weighs $6 Premium for Added Features, Access to Tickets

Spotify, the world's leading music streaming service, is considering a new pricing tier that could significantly expand its user base and revenue. The company is exploring the possibility of introducing a $6 premium tier, which would offer users additional features and access to concert tickets. This move comes as Spotify seeks to bridge the gap between its free and $10 premium tiers, providing users with more options and value for their money.

The $6 premium tier is expected to include a mix of features from both the free and $10 premium tiers. Some of the key features that users can expect from this new tier include:

1. On-demand playback for select playlists: Users will be able to play any song on select playlists on-demand, similar to the full on-demand playback available in the $10 premium tier. This feature is currently not available in the free tier, where users can only shuffle playlists.
2. Ad-free listening: The $6 tier will offer ad-free listening, which is a significant improvement over the free tier, where users are subjected to frequent ads. However, it is not as comprehensive as the $10 premium tier, which offers ad-free listening across all content.
3. Offline playback: Users in the $6 tier will be able to download songs, albums, and playlists for offline playback, which is not available in the free tier. This feature is also available in the $10 premium tier.
4. Higher audio quality: The $6 tier will offer higher audio quality than the free tier, which is limited to 128 kbps. However, it will not match the 320 kbps quality available in the $10 premium tier.
5. Access to exclusive content: Users in the $6 tier will have access to exclusive content, such as podcasts and music, which is not available in the free tier. However, the extent of this exclusivity may not match the $10 premium tier.

Spotify's potential new pricing strategy aligns with competitors like Apple Music and Amazon Music, which already offer similar plans. Apple Music offers a family plan for up to six family members living at the same address for $14.99 per month, while Amazon Music offers a family plan for up to six family members for $14.99 per month as well. Spotify's family plan, which is expected to be priced at $14.99 per month for up to six family members, is in line with these competitors.

Spotify's student plan, which offers access to Hulu's ad-supported plan and Showtime for $4.99 per month, also aligns with Apple Music's student plan, which offers access to Apple TV+ for $4.99 per month. Amazon Music does not currently offer a student plan.

The impact of Spotify's new pricing strategy on market share is difficult to predict, but it is likely to be positive. According to a survey by MusicWatch, 44% of U.S. music subscribers are interested in a family plan, and 37% are interested in a student plan. By offering these plans, Spotify is likely to attract new subscribers who are interested in these plans but are currently subscribed to a competitor's service.

Additionally, Spotify's new pricing strategy may also help to retain existing subscribers who are currently paying for multiple services. For example, a family of four who are currently subscribed to Spotify, Apple Music, and Netflix may switch to Spotify's family plan and cancel their Netflix subscription, saving them money and reducing the number of services they need to manage.

Overall, Spotify's potential new pricing strategy aligns with competitors like Apple Music and Amazon Music, and is likely to be a positive move for the company in terms of attracting new subscribers and retaining existing ones. The introduction of a $6 premium tier, along with family and student plans, could help Spotify expand its user base and increase revenue.

In conclusion, Spotify's potential new pricing strategy, which includes a family plan and a student plan, aligns with competitors like Apple Music and Amazon Music, and is likely to be a positive move for the company in terms of attracting new subscribers and retaining existing ones. The introduction of a $6 premium tier, along with family and student plans, could help Spotify expand its user base and increase revenue. However, the success of this strategy will depend on how well Spotify executes its plans and adapts to the changing market landscape.