Spotify, the world-renowned music streaming service, is planning to introduce a higher-priced subscription that will enable lossless music streaming, according to Bloomberg. This new subscription will be called “Supremium” and will initially be offered in markets outside the United States. Exact locations are not yet known.
Delayed launch of hi-fi streaming
Back in 2021, Spotify announced the launch of CD-quality HiFi streaming, but quietly postponed the launch. According to Bloomberg, this was in response to competition: both Amazon and Apple integrated lossless streaming into their music streaming services in mid-2021 at no additional cost. This created unfavorable conditions for Spotify to sell lossless music streaming at an additional cost. Information on pricing for the new subscription is still pending, and Spotify has yet to comment on the report.
Price comparison: Spotify vs. competition
Amazon Music Unlimited costs 11 euros a month for customers without a Prime membership (with Prime membership: 9 euros), and Apple Music can also be subscribed to for 11 euros. In comparison, Spotify costs only 10 euros per month and is thus cheaper than the competition. Spotify also offers a free option with commercial breaks.
Amazon only increased the price for Music Unlimited in January, citing the need to continue offering the service in the usual quality. Amazon stated that the cost of the service has increased significantly over the past three years. For example, licensing costs for Prime Music content have increased by 10.6 percent per customer. Expenses for personnel and technical infrastructure are now also higher. In addition to economic developments, Amazon also attributed the cost increases to “competitive and regulatory requirements.” Spotify is likely to face similar challenges.
Outlook
With the planned launch of its Supremium subscription, Spotify appears poised to face market challenges and strengthen its position as a leading music streaming service. It remains to be seen how users will react to the new offering and whether Spotify will succeed in consolidating its market position with this move.
