Spotify CEO Daniel Ek confirmed during an earnings call that the company is 'still' developing a higher-tier subscription plan offering improved audio quality and additional features. Even after UI design and pricing plan leaks, expectant users are almost as elusive regarding Spotify HiFi as they were some months (or even years) ago.
While a firm release date is yet again absent, Ek hinted at a "deluxe" version priced around $17-$18 per month, representing a $5 increase over the standard Premium tier. This is in line with a previous leak that hinted towards a $16.99 Spotify Hi-Fi plan. The new tier is expected to include lossless audio streaming, advanced library management tools, AI-powered playlists, and headphone/EQ optimization features.
Analysts state that Spotify's initial strategy of selling lossless audio as a separate add-on may have been a bad idea, considering its competitors like Apple Music includes high-res audio within their base subscriptions ($10.99 a month).
In a strong second quarter, Spotify reported a 14% year-over-year increase in monthly active users to 626 million, with subscribers growing 12% to reach 246 million. Overall revenue climbed 20% to €3.8 billion, with gross margin reaching 29.2% and operating income improving to €266 million. CEO Daniel Ek attributed this success to relentless innovation.
With a potential rollout later in 2024, the exact features and functionalities of this "deluxe" tier will be (hopefully) revealed in the coming months.