Spotify to Introduce More Expensive Subscription Tier for Music Lovers

Spotify Technology SA will introduce a new, higher-priced premium plan for its most ardent users later this year, according to a person familiar with the plan. Users will be charged at least $5 more per month for access to better audio and new tools for creating playlists and managing their song libraries, said the person.

Spotify will position this new option as an add-on for existing customers. That means most users will remain on their current Spotify plans, but customers who choose to upgrade will generate additional sales for the company and its business partners. The new tier’s pricing will vary depending on each user’s base plan but will average out to about a 40% markup, said the person, who asked not to be identified because they weren’t authorized to speak about the issue. Bloomberg News previously reported on the developing plan last year, which at the time was dubbed internally as “Supremium.”