Spotify's $18 'Music Pro' Subscription Focuses On Superfans, With Content From Taylor Swift, Kendrick Lamar: Report

Spotify Technology SA SPOT is set to launch a new premium subscription service called “Music Pro” at $18 per month, targeting music enthusiasts with enhanced features.

What Happened: The streaming giant has secured licensing agreements with Universal Music and Warner Music, enabling the inclusion of content from artists like Taylor Swift and Kendrick Lamar, according to sources cited by the Financial Times.

However, a deal with Sony Music Entertainment, home to Beyoncé, remains pending, according to the report.

The new tier will offer three key features: higher-quality audio streaming, priority access to concert tickets, and advanced functionality including a “DJ” option. This move aligns with the music industry’s broader strategy to monetize “superfans” who regularly invest in merchandise and live performances.

Spotify did not immediately respond to Benzinga's request for comment.

Why It Matters: Spotify CEO Daniel Ek recently signaled this strategic shift, stating the company is moving away from a “one size fits all” approach toward more specialized offerings as its user base expands. The platform will also integrate more professional music videos to compete with Alphabet Inc. GOOGL GOOG owned YouTube and ByteDance‘s TikTok.

Spotify’s expansion comes amid strong financial performance, with the company recently achieving its first full year of profitability following strategic cost-cutting measures. The stock has surged nearly 40% year-to-date, reaching a market capitalization of $130 billion, surpassing the combined value of the three major record labels.

Current analyst consensus shows a price target of $534.10 for SPOT, with recent ratings from Citigroup, Goldman Sachs, and Benchmark averaging $711.67, implying an 11.63% upside potential.