In a significant announcement during Spotify’s recent earnings call, CEO Daniel Ek confirmed that the much-anticipated higher-quality streaming tier, Spotify HiFi, is indeed in the works. First announced over three years ago, the HiFi tier has been eagerly awaited by music enthusiasts seeking superior audio quality.
Despite the excitement, Ek offered no firm timeline for its release, stating that the project is still in “early days”—a phrase that has become somewhat of a cliché in the tech industry. Notably, it has been 1,247 days since the initial announcement of HiFi.
Features And Pricing
Ek hinted at the pricing structure for the upcoming HiFi tier, suggesting it would likely cost around $5 more than the current Premium subscription. This places it at an estimated $17 to $18 per month. The enhanced offering is set to include not only lossless audio but also other premium features such as advanced library management, AI-powered playlists, and headphone sound quality optimization. “The plan here is to offer a much better version of Spotify,” Ek explained, highlighting that the new tier would provide higher quality across the board and more control for users.
Competition And Strategy
Spotify’s delay in rolling out its HiFi service can be partly attributed to the competitive landscape. When Apple and Amazon started offering higher-resolution audio as part of their standard subscriptions, Spotify found itself at a disadvantage. Unlike its competitors, Spotify doesn’t have multiple revenue streams to offset potential losses from offering high-quality audio at no extra cost. This has forced the company to rethink its strategy, leading to the creation of this add-on package that aims to appeal to its most dedicated customers.
Target Audience
Ek emphasized the potential market for the new tier, pointing out that there is a significant subset of Spotify’s 246 million subscribers who are likely to be interested in an upgraded experience. These users, described as “huge music lovers,” are looking for more flexibility and enhanced music capabilities.
The Road Ahead
According to Bloomberg, Spotify is aiming to launch its “deluxe” version later this year. After years of anticipation, it seems that some users won’t have to wait much longer to experience the full suite of Spotify HiFi will offer. The rollout of this enhanced tier marks a pivotal moment for Spotify as it seeks to retain and grow its user base in an increasingly competitive market.
References:
Spotify Newsroom: Five Things to Know About Spotify HiFi
The Verge: Spotify CEO confirms a ‘deluxe’ version with hi-fi audio is coming soon
Bloomberg: Spotify to Introduce More Expensive Subscription Tier for Music Lovers
What Hi-Fi: What is lossless audio? Is it worth it and do you need it?
