Spotify's Anticipated Hi-Fi Offering Faces Pricing Tribulations

For some time, Spotify has been vocal about its intention to launch a high-fidelity, high-resolution audio tier, having initially broached the topic even before Apple introduced lossless audio support in Apple Music. In February 2021, Spotify unveiled its HiFi service. Now, over two years later, whispers of an impending launch resurface. Bloomberg suggests that the much-awaited tier might finally see the light of day later this year, albeit exclusively in the United States.

One of the principal factors contributing to this protracted delay is the intricacy of pricing. Spotify found itself in a quandary as Apple Music and Amazon unexpectedly incorporated lossless audio into their existing plans at no additional cost. According to Bloomberg, this development led Spotify to put its HiFi plans on hold.

It bears mentioning that this is not Spotify's maiden voyage into the realm of high-fidelity audio. Gustav Soderstrom, Spotify's Co-President, had previously conveyed to The Verge the company's aspirations for a HiFi tier. However, he emphasised the importance of ensuring that this endeavour was economically viable for the firm. He alluded to a changing landscape in the industry as the reason for the delay in launching the service.

“We want to do it in a way where it works for us from a cost perspective as well. I’m not allowed to comment on our label agreements, nor on what other players in the industry did, for obvious reasons,” he said.

In October, speculation arose that the HiFi service might be bundled into a Platinum Plan priced at $19.99 – a stark contrast to the standard premium plan, which costs half as much. Meanwhile, Apple and Amazon have modestly increased their US prices to $10.99, including the lossless audio feature.

Furthermore, Spotify is purportedly considering an augmentation of its premium offering by incorporating audiobooks from October onwards. This addition could potentially bolster the rationale for the considerable price increment. While the HiFi service is expected to remain confined to the US market, there is speculation that audiobooks could be introduced to other regions earlier.

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