Since being announced in 2021, Spotify has been working on HiFi quality streaming for its song library. These efforts are finally coming to fruition, as Bloomberg’s Ashley Carman reports. Allegedly, the streaming service is preparing a new subscription option called “Supremium” in order to generate more revenue.
Expected to be the most expensive Spotify plan, Supremium will likely offer the HiFi audio quality available on Apple Music and Amazon Music at no extra cost, in addition to some other benefits. Sources familiar with the matter say the company may provide subscribers with “a certain number of free hours per month or expanded access to audiobooks through a certain number of books,” with listeners having the option to purchase more.
This subscription option is expected to enter the US market by October, followed by availability in other markets worldwide. Currently, users can only pick up audiobooks through the app by choosing.
Earlier this year, Spotify CEO Daniel Ek hinted that the company expects to raise prices in 2023: “When the time is right, we will raise the price, and this price increase will happen because we provide so much value for our customers.”
Spotify exceeded market expectations, reaching 515 million monthly active users and 210 million Premium subscribers in the first quarter of the year. Unlike Apple and Amazon, whose core businesses are not streaming services, companies like Spotify and Netflix are struggling to generate revenue and their customers may be more sensitive to price increases.
It is not yet clear whether the HiFi quality will be enough to increase Spotify subscribers. Offering a better sound quality may not make a significant difference, as many people use wireless headphones that cannot broadcast losslessly.
Audiobooks, on the other hand, can help steer people towards a more expensive subscription. However, the streaming service company has to offer more benefits if it wants to charge an extra price for features that some other competitors provide for free.
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