{"id":104135,"date":"2025-04-16T15:25:36","date_gmt":"2025-04-16T14:25:36","guid":{"rendered":"https:\/\/routenote.com\/blog\/?p=104135"},"modified":"2025-04-16T15:39:24","modified_gmt":"2025-04-16T14:39:24","slug":"how-much-are-people-willing-to-pay-for-a-super-premium-music-subscription","status":"publish","type":"post","link":"https:\/\/routenote.com\/blog\/how-much-are-people-willing-to-pay-for-a-super-premium-music-subscription\/","title":{"rendered":"How much are people willing to pay for a super premium music subscription?"},"content":{"rendered":"\n

As streaming enters its next phase, a MIDiA study reveals strong interest in a higher-priced subscription tier- but only if the perks are right.<\/span><\/h2>\n\n\n\n

A super premium push in the music industry<\/h3>\n\n\n\n

The music industry is entering a new era, Streaming 2.0<\/a>, and with it comes the search for new revenue streams as many major markets have reached saturation<\/a>. One major development? The push for a higher priced Super Premium (Supremium for short) music subscription tier. <\/p>\n\n\n\n

While streaming has helped the industry rebound, average revenue per user remains below the peak spending levels of the late 90s. The current model means that the average consumer pays no more than the superfans<\/a> consuming and engaging with more music. The industry consensus is that Supremium could be the answer to increasing revenue in mature markets. Supremium offerings are rumored to include perks like hi-fi audio, early access to merchandise and tickets, and even remixing tools.<\/p>\n\n\n\n

To explore fans\u2019 willingness to pay for this upgrade at varying price points and find the revenue maximising price for the industry, MIDiA Research<\/a> surveyed 2,000 US consumers. We spoke with Tatiana Cirisano, Vice President of Music Strategy at MIDiA, to dig deeper into their findings <\/a>and whether Supremium could help the industry \u2018break saturation<\/a>\u2019.<\/p>\n\n\n\n

\"\"\/
Image credits: MIDiA Research<\/a><\/em><\/figcaption><\/figure>\n\n\n\n

Supremium: How many people are interested, and at what cost?<\/h3>\n\n\n\n

The biggest question surrounding Supremium is: do people genuinely want it?<\/p>\n\n\n\n

MIDiA\u2019s study showed that 74% of music subscribers expressed at least some level of interest in a Supremium tier, before any potential cost was discussed. Knowing that these surveys typically over-report consumer interest, MIDiA applied weighted adjustments for each level of interest (ranked on a five-point scale) alongside historical data, meaning that this 74% represents a solid level of genuine interest.<\/p>\n\n\n\n

When it comes to price, Spotify<\/a>\u2019s \u2018Music Pro<\/a>\u2019 subscription tier will reportedly cost an additional $5 to $6 on top of its Premium subscription. While Tatiana couldn\u2019t reveal the price that most people were interested and willing to pay, she noted that Spotify\u2019s proposed price point is \u201cconservative\u201d. MIDiA\u2019s research found that \u201cthere\u2019s willingness to pay quite a bit over that\u201d, with the revenue-maximizing price being \u201cquite a good deal higher\u201d. <\/p>\n\n\n\n

The right feature mix is crucial<\/h3>\n\n\n\n

Tatiana emphasized that Supremium\u2019s success depends heavily on nailing the right combination of benefits that \u201cwill entice people to subscribe\u201d. While Supremium is primarily geared towards superfans, these fans are only a niche market. In order to scale the product, Supremium will also need to appeal to a broader audience- a tough balance to strike.  <\/p>\n\n\n\n

Some features, like hi-fi audio, are not a strong enough driver on their own. Many listeners now expect high-quality audio as standard, especially since Apple Music<\/a> already offers it at no extra cost. In contrast, benefits that are more scarce, like early access to concert tickets or artist merchandise, are more valuable to fans. However, Tatiana pointed out a crucial downside: if too many people have access to these so-called exclusive, early-access perks, their value diminishes. With venues, organizers, and artists already offering early-access concert tickets, it could mean that almost everyone has early-access, and so effectively no one really does.<\/p>\n\n\n\n

One feature that does stand out is the ability to remix tracks. While currently still a fairly niche behaviour, this area is gaining traction, especially with the younger generations. Audiences are no longer just consuming music, but are actively participating in it. Just think how many fan-made remixes<\/a> you come across on TikTok. Aligning with the broader trend<\/a> around user-generated music content, Tatiana highlighted the need for social functionalities on streaming platforms. People are sharing their remixes online to showcase and engage with others. Without those social components, remixing features may struggle to gain traction on streaming platforms. <\/p>\n\n\n\n

Why an ad-lite tier probably won\u2019t work<\/h3>\n\n\n\n

Over the past year, calls have been made<\/a> to start charging for ad-supported music plans as another way to boost revenues. MIDiA\u2019s data suggests otherwise. Willingness to pay drops sharply when ads are included. Unlike video streaming platforms, where users often juggle multiple subscriptions and tolerate ads, music listeners don\u2019t expect ads with paid plans. <\/p>\n\n\n\n

For streaming platforms, a paid ad-supported tier could backfire. Not only could it draw potentially new Premium subscribers to a cheaper alternative, it could also cause existing Premium users to downgrade from their full-price subscriptions.<\/p>\n\n\n\n

Time to offer annual subscriptions<\/h3>\n\n\n\n

One surprisingly simple insight from the study is that people are open to paying for a year of music up front- even without a discount. Yet Spotify remains the only major service not to offer this. With clear benefits like reduced churn and guaranteed revenue, it\u2019s an easy win that most platforms have already capitalized on.<\/p>\n\n\n\n

The road ahead of streaming<\/h3>\n\n\n\n

So, is Supremium the future? Tatiana believes it will launch and be successful, but it won\u2019t happen overnight. Listeners need to learn about the benefits, and timing does matter (some people may wait until they can justify the extra spend). <\/p>\n\n\n\n

Tatiana believes that many fandom monetization efforts are being prematurely written off. If Supremium isn\u2019t an instant hit, it doesn\u2019t mean it’s a failure. <\/p>\n\n\n\n

For now, platforms like Spotify must focus on getting the features right, possibly rethinking their social strategies in order to make it work. Whether we see social features on streaming platforms further down the line remains to be seen. But, with 74% of subscribers showing interest, and many willing to pay in excess of an extra $6 per month, the demand for Supremium is clear. <\/p>\n\n\n\n

\n\n\n\n

Make sure your music is ready for the next era of music streaming. Get your tracks on streaming platforms worldwide for free with RouteNote.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

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