Spotify Technology SA (NYSE:SPOT)’s announcement of a new Platinum subscription tier has been welcomed by Jefferies analysts with cautious optimism.
Spotify on Monday unveiled its Platinum tier in five test markets (India, Indonesia, South Africa, UAE, and Saudi Arabia), marking a shift in the company’s subscription strategy.
The new structure introduces a Lite plan at the previous Individual plan’s price, a Platinum plan featuring Lossless audio and AI-driven features priced at more than double the Lite plan, and the removal of Family and Duo plans. Existing subscribers will retain their legacy tiers.
Jefferies analysts highlighted that the financial impact from the pilot markets is likely to be modest in the near term, but success could signal broader expansion.
The firm estimates that a global rollout of the Platinum tier to new subscribers could add roughly €477 million, or about 3% upside, to Spotify’s fiscal year 2026 Premium revenues.
However, Jefferies cautioned that a near-term rollout in the US is unlikely to be their base case. “Applying these new tiers to the US (Lite priced at parity to Individual; AI and Lossless only available to Platinum) would feel more like 'shrinkflation' than an upgrade, as Lossless audio and AI features are already included in the current US individual plan,” they wrote.
They also noted that Spotify typically follows a historical cadence of US price increases and that introducing new tiers in the near term could create back-to-back hikes, potentially complicating subscriber conversion.
Despite these caveats, Jefferies reiterated its positive stance on Spotify, noting it “remains a top pick.” “We’re positive on Spotify, given continued price increase cadence, more tiering, H2 ad revenue re-accelleration, and further GM improvements,” the analysts wrote.
They maintained their ‘Buy’ rating with a price target of $800, implying roughly 24% upside from the current level.