Photo Credit: Alexander Shatov
A new survey suggests 45% of Spotify subscribers are interested in a higher-priced service level, up from 39% from Q4.
A survey by KeyBanc Capital Markets reveals that 45% of Spotify subscribers are interested in a possible “high-end” service tier from Spotify — even though SPOT stock dropped over the weekend. That’s up from 39% in the firm’s fourth-quarter survey.
“While Spotify has not officially announced a higher-priced tier, comments from the company and labels suggest one is on the way,” said analyst Justin Patterson. “The quarter-to-quarter uptick [in interest] coincides with this question expanding to highlight priority ticket access as part of the tier. With Spotify already having agreements with two major labels [UMG and Warner], we suspect this tier could launch in second-half 2025.”
The company’s Q1 survey showed that 31% of respondents use Spotify, compared with 22% for Pandora, 18% for Apple Music, and 17% for Amazon Music. While 37% of respondents said they listen to YouTube Music, KeyBanc attributed the higher number to confusion between YouTube’s video platform and YouTube Music.
Among Spotify users, 48% use its free, ad-supported tier, while 47% subscribe to a paid Spotify service. The remaining 5% were unsure which Spotify tier they used.
Spotify subscribers were asked if they’d be willing to pay an additional $5-6 a month for a “super fan” Spotify subscription with extra features. Those features could include enhanced audio quality, early access to new releases, AI playlist creation, artist Q&A sessions, and priority access to concert tickets. Around 45% said they were interested, while 32% said they were not interested. The remainder were undecided.
KeyBanc surveyed 2,045 people in the United States on their audio habits. The survey also showed more interest in audiobooks on Spotify, 29% versus 25% in the previous quarter.
“We continue to view Spotify as being well positioned to achieve at least 15% annual revenue growth over the medium term, with potential to reach 20 growth if new initiatives and advertising ramp,” said Patterson.
In the US, Spotify’s ad-free subscription costs $11.99 a month for a single user, $16.99 for a two-person plan, and $19.99 for a family plan. The company also offers a student plan for $5.99 a month.
Despite a slow weekend overall, Spotify stock continues to soar, with a 120% return over the past year. Analysts maintain a bullish consensus with price targets ranging from $442 to $759.
Content shared from www.digitalmusicnews.com.