Spotify testing out new low-cost subscription tier with ads enabled

The subscription tier offers unlimited skips and on-demand listening

Streaming services are pushing lower-cost subscription offerings in an effort to convert free users into paying clients. Following the announcement of a YouTube Premium Lite tier yesterday, Spotify is the latest streamer to reveal a trimmed-down lower-cost subscription tier.

Spotify is exploring a new ad-enabled plan called ‘Spotify Plus,’ which will reportedly cost $0.99 USD per month (roughly $1.24 CAD) and includes unlimited skips and on-demand listening instead of shuffling through albums and playlists.

The news of the new trimmed-down tier was first shared by The Verge and was later confirmed by Spotify.

“We’re always working to enhance the Spotify experience and we routinely conduct tests to inform our decisions,” a spokesperson told The Verge. “We’re currently conducting a test of an ad-supported subscription plan with a limited number of our users.”

Further, Spotify also says that there is no guarantee that this cheaper plan will officially release as it is now, stating, “some tests end up paving the way for new offerings or enhancements while others may only provide learnings.”

Compared to Spotify Premium, which costs $9.99 CAD per month and offers an ad-free experience along with unlimited skips and on-demand listening, the new low-cost tier seems to be a solid option, providing comparable benefits, such as unlimited skips and the option to freely select music to listen to.

Spotify’s free tier, on the other hand, only allows for six skips per hour and typically only allows you to listen to shuffled music from recommended artists.

Via: The Verge