Spotify to introduce more expensive subscription tier later this year, Bloomberg News reports

In this photo illustration, the Spotify music app is seen on a phone on June 04, 2024 in New York City. Spotify made an announcement that it will be raising the price of its Spotify Premium Individual plan by $1, from $10.99 to $11.99 per month and the Premium Family plan by $3, from $16.99 to $19.99 per month. Michael M. Santiago | Getty Images

Spotify will introduce a new expensive plan for its most ardent users later this year, Bloomberg News reported on Tuesday, citing a person familiar with the plan.

The audio-streaming giant's new plan, which will be an add-on for existing users, is likely to cost $5 more per month for access to better audio and fresh tools for creating playlists and managing song libraries, the report said.

Spotify declined to comment. Shares of the Swedish company rose nearly 1% in early U.S. trading.

The report comes a week after the company raised prices for its premium plans in the United States, in a push to boost margins, after it reined in marketing costs.

The new tier's pricing will vary as per each user's base plan but it is expected to average out to about a 40% markup, the report said, adding the upgraded subscribers will get access to Spotify's high-fidelity (HiFi) audio.

In 2021, Spotify announced the HiFi audio feature to let premium subscribers in select markets upgrade their sound quality, but according to the report its rollout was delayed.

Spotify's premium subscribers rose by 14% to 239 million in the first quarter ended March 31 from a year earlier. It forecast monthly active users at 631 million for the second quarter.

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