Spotify is set to enhance its service offerings with a high-fidelity audio option known as the HiFi tier, which will be available as a premium add-on for an additional $5. This new feature is designed to complement existing subscriptions by allowing users to integrate HiFi quality.
This upgrade not only provides high-definition audio but also introduces advanced functionalities to help users customize their music experience. These include tools for creating tailor-made playlists suitable for various activities and times, enhancing the overall user interaction with the platform.
Despite the anticipation, Spotify has remained tight-lipped about the official launch. The HiFi feature was initially expected in 2021 but has seen multiple delays. Recent developments and leaks hint at the inclusion of features like 24-bit lossless audio, AI-powered playlist creation, and mood-based song filtering.
Some users have even noticed references in the app’s code suggesting imminent implementation, with mentions of lossless audio quality reaching up to 2,117kbps and limited availability in the FLAC format for certain tracks.
This new feature comes as Spotify prepares to raise base plan prices for the second time in one year, bringing the streamer’s monthly premium rate above that of competitors Apple Music and Tidal.
Spotify is also reportedly leveraging a loophole to classify its service as a “bundled subscription” by including audiobooks, potentially cutting $150 million in US mechanical royalties. The move has been criticized by industry groups like the National Music Publishers Association and Nashville Songwriters Association International, accusing Spotify of acting in bad faith towards creators.
Despite these controversies, Spotify continues to see financial growth, reporting strong Q1 2024 earnings with a profit of $179 million and a 20% increase in revenue to $3.88 billion. However, its total monthly active users of 615 million slightly fell short of the 618 million forecast.
Spotify expects to continue its trend of price increases in various global markets while projecting a stronger Q2 with significant operating income and revenue expectations.
