Spotify Set to Launch More Expensive Subscription Tier
The accuracy of information regarding Spotify’s subscription plans is crucial, especially when there are disagreements. Recently, Reuters reported that Spotify is planning to introduce a new, more expensive subscription tier. The news came from an inside source within the company who informed Reuters about this development.
While there have been rumors in the past about Spotify considering a higher-priced plan, it seems that these whispers are now closer to becoming a reality. The new tier is expected to offer high-fidelity audio streaming, also known as lossless audio streaming. In addition, users can anticipate enhanced resources for organizing their music collections and creating playlists on their accounts.
Although the projected cost of the new subscription tier is said to be around $5 more than the current plans, it is important to note that this may vary depending on the location. This means that some regions might see a price increase of up to 40% or more compared to the previous year.
Spotify’s recent price increase in the US was aimed at boosting the company’s revenue. The single plan saw a $1 increase, while the family and duo plans saw increases of $2 and $3 respectively. Interestingly, Apple Music, Spotify’s main competitor, is expected to maintain its current pricing structure. However, there is speculation that Apple might adjust its pricing to match Spotify’s recent changes.
It is not uncommon for companies in highly competitive markets to coordinate their pricing strategies. Matching the pricing of rivals is a popular tactic used to stay competitive and attract customers. While the price increase announced by Spotify only affects the US market, it is not out of the question that similar changes could eventually be made in other regions.
In Pakistan, Spotify has also adjusted its subscription prices to accommodate the rising demand for its services. The new price of Rs. 579 per month is higher than the previous rate of Rs. 479 for a family plan. However, compared to the price increase in the US, the changes in Pakistan are expected to be milder.
With these recent price adjustments, Spotify memberships now cost more than Apple Music memberships. Apple Music’s individual and family plans are still priced at $10.99 and $16.99 respectively. This shift can be attributed to the price increase implemented by Spotify in the US.
It remains to be seen whether Apple will follow suit and adjust its pricing structure to align with Spotify’s changes. However, this possibility should be taken into consideration, as companies in competitive markets often harmonize their pricing strategies with those of their competitors.
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