Photo credit: www.theverge.com

Spotify HiFi: The Long-Awaited Upgrade

The narrative surrounding Spotify HiFi has been marked by numerous developments and delays. Initially revealed over three years ago, the anticipated higher-quality streaming service has yet to debut. Recent insights indicate that the lossless audio feature may be integrated with additional functionalities—such as enhanced library management, AI-driven playlists, and sound quality optimization for headphones—serving as an upgrade to Spotify’s premium subscription.

During Spotify’s recent earnings call, CEO Daniel Ek reiterated that an improved version of the existing service is still in progress, although he refrained from providing a specific release timeline. “The plan here is to offer a significantly enhanced version of Spotify,” Ek explained. He suggested that the new offering could be priced around $5 more than the current premium subscription, potentially setting it at $17 or $18 monthly. This upgrade is envisioned to retain all the features of the current version while providing users with greater control and higher audio quality.

This pricing model aligns with estimates from Bloomberg, which speculated that the new tier would cost about $5 above Spotify’s existing $11.99 rate. However, the eventual form of Spotify’s lossless audio service diverges significantly from the company’s original plans—especially as it appears Spotify was unprepared for competitors like Apple and Amazon to provide high-resolution audio within their standard subscription offerings. Initially, Spotify had aimed to offer this service at a premium price.

In contrast, rivals like Apple and Amazon can adopt a more aggressive pricing strategy due to their diverse business portfolios, which mitigate potential losses in their music streaming segments. Spotify, however, has had to revise its strategy, aiming for an add-on package designed to entice its most dedicated users. The timing may prove fortuitous for Spotify.

Ek noted that a substantial portion of Spotify’s 246 million subscribers expresses interest in a more advanced version of the service, particularly those avid music enthusiasts seeking enhanced customization and functionality within the platform. “There’s a large segment of this user base that desires a much better version of Spotify,” he remarked, indicating an understanding of their needs.

According to Bloomberg, Spotify is targeting a rollout of its “deluxe” version later this year. After a prolonged wait, it seems that only a few months remain before users discover the comprehensive features and benefits of this anticipated upgrade.

Source
www.theverge.com