The Long Road to Spotify HiFi
The development of Spotify HiFi has been a protracted process. Approximately three years ago, Spotify declared its intention to introduce a high-fidelity streaming tier, but the service has not yet been launched. Recent reports indicate that lossless audio might be integrated with supplementary characteristics such as advanced library management, AI-assisted playlists, and optimized headphone sound quality. These attributes are anticipated to be available as a supplementary offering to Spotify’s premium subscription. During Spotify’s earnings call today, CEO Daniel Ek affirmed that the development of a high-quality option is ongoing, although he did not specify a definitive release date.
Using a familiar tech industry cliché, Ek characterized the effort as “still being in the early days,” which is 1,247 days after the initial announcement of HiFi. Ek expressed that “the plan here is to offer a significantly improved version of Spotify.” He indicated that this premium version could cost approximately $5 more than the current premium tier, bringing the price to around $17 or $18. In addition to all the benefits of the standard Spotify, this version will also feature higher quality and undisclosed supplementary attributes.
The projected pricing aligns with Bloomberg’s estimate of an additional $5 on top of Spotify’s monthly rate of $11.99. The final configuration of Spotify’s lossless audio is expected to deviate from the company’s original strategy. Initially, Spotify had intended to charge a premium for this feature. However, the company was taken aback when Apple and Amazon began incorporating higher-resolution audio into their standard subscriptions. Given that these companies have other divisions to offset their losses, they can be more adaptable with pricing, whereas Spotify relies solely on its music streaming service. Consequently, Spotify has had to reassess its plans with the aim of creating an add-on package that will resonate with its devoted users. The timing appears to be auspicious.
Ek stated, “There’s a substantial subset of our 246 million subscribers who desire a significantly enhanced version of Spotify.” He added, “These are enthusiastic music enthusiasts seeking greater flexibility in utilizing Spotify and its music features.”
