Spotify (SPOT) is developing a new premium subscription tier, called “Music Pro,” according to a Bloomberg report. This service will offer enhanced features, such as higher-quality audio, AI-powered remixing tools, and exclusive access to concert tickets.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
The additional cost for the new service is expected to be around $5.99 per month on top of the existing Spotify Premium subscription. The pricing will likely vary by region, with lower costs in less-developed markets.
Further, the company plans to gradually roll out “Music Pro,” adding new features and functions over time. This phased approach will allow Spotify to gather user feedback and improve the service before a full-scale launch.
Spotify Is Securing Deals for “Music Pro”
The launch of Spotify’s premium tier requires new licensing agreements with major record labels. While the company has already secured deals with Universal Music (UMGNF) and Warner Music (WMG), an agreement with Sony (SONY) remains pending. This could potentially delay the planned launch of “Music Pro” later this year.
At the same time, SPOT is actively negotiating with major concert promoters and ticket sellers to integrate ticketing options within the premium tier.
This move reflects Spotify’s strategy to diversify its revenue streams and cater to the needs of its users. Also, the company faces competition from other music streaming service providers like Apple (AAPL) and Amazon (AMZN), which already offer higher-quality audio options as part of their premium subscriptions. By introducing “Music Pro,” Spotify aims to differentiate its offerings and capture a larger share of the high-end audio market.
Is SPOT a Good Stock to Buy?
Turning to Wall Street, SPOT stock has a Moderate Buy consensus rating based on 18 Buys and eight Holds assigned in the last three months. At $669.32, the average Spotify stock price target implies 4.88% upside potential.
