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Spotify could make Premium subscribers pay $5 more a month for its next big bet
Will you play extra for this new Spotify service?
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Edgar Cervantes / Android Authority
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TL;DR
- Spotify is reportedly targeting a Q1 2027 launch for a new AI-powered music service.
- The platform could potentially charge Premium subscribers an additional $4 to $5 per month for it.
- The optional add-on would reportedly let users remix and cover existing songs, but Spotify still needs to finalize licensing deals and convince artists to participate.
Spotify may be getting ready to givePremium subscribers another reason to spend more on the streaming service.
The platform is reportedly working on a new AI-powered offering for early 2027, and is considering charging Premium users an additional $4 to $5 per month for it.
According to a report from the Financial Times, the new service would let subscribers use AI to create remixes and covers of existing songs.
Spotify is reportedly targeting a launch in the first quarter of 2027, potentially unveiling the service around the Grammy Awards in February. The company is also said to be negotiating licensing agreements with major record labels as it works toward the launch.
Would you pay an extra $5 a month for Spotify’s upcoming AI-powered music feature?
The potential price tag is worth noting, particularly for subscribers who are already paying for Spotify Premium. The proposed add-on would be an additional expense rather than a confirmed increase to the existing Premium subscription, but it could still make Spotify’s most expensive offerings considerably pricier.
Bernstein analyst Ian Moore estimates 7% to 8% of Spotify’s US subscribers could sign up for the AI service by the end of 2028. While that could potentially become a meaningful revenue stream for Spotify, it also suggests the new paid service might only appeal to a small fraction of paying Spotify subscribers.
Meanwhile, Spotify’s plans are also seemingly facing another hurdle, i.e., convincing artists to participate.
The company and Universal Music Group have reportedly held meetings with individual artists to persuade them to make their music available for the service. However, winning over major contemporary stars has proved more challenging than securing participation from some established older artists.
Artists will reportedly be able to opt in or out of the service, even if their record labels have signed licensing agreements with Spotify.
Spotify is reportedly developing a system that would allow fan-created remixes to appear in playlists, with their streams counting toward the original songs in Spotify’s music charts. Royalty payments from these remixes would also flow back to the original artists.
Spotify co-CEO Gustav Soderstrom has argued that the service could offer artists a new way to make money. Whether that argument will convince artists and subscribers remains to be seen.
