Spotify Is Testing Hi-Fi Sound for Possible Premium Subscription

Spotify may be emulating Tidal with a proposed Hi-Fi premium subscription tier, reports The Verge. Earlier this week Spotify started running A/B tests for

Subscription News: Spotify Is Testing Hi-Fi Sound for Possible Premium Subscription

Source: Spotify

Streaming music service Spotify may be emulating Tidal with a proposed Hi-Fi premium subscription tier, reports The Verge. Earlier this week Spotify started running A/B tests with its premium subscribers for the new lossless CD quality audio streaming product, called Spotify Hi-Fi. The testing is being offered to its subscribers at different price points ranging from $5 to $10 per month on top of the standard subscription price. Spotify is staying quiet about the details though.

According to The Verge, when they asked Spotify for a comment, a spokesperson told them, “We are always testing new products and offers but have no news to share at this time.”

Subscription News: Spotify Is Testing Hi-Fi Sound for Possible Premium Subscription

Source: Twitter

Now with 50 million subscribers, Spotify operates under a freemium model, allowing music lovers to listen for free with limited features or, for $9.99 month, after a 30-day free trial, with features like an ad-free experience, unlimited skips and offline listening. The Verge says that Spotify Hi-Fi would include all the features of the premium product plus lossless CD quality audio, discounts on limited-edition vinyl, and one free vinyl.

Tidal does not offer a free option, but its standard plan is also priced at $9.99 a month unless pre-paid, in which a discount applies. Tidal’s HiFi plan offers lossless high fidelity sound quality and high definition music videos. HiFi costs $19.99 per month, unless pre-paid, in which a discount applies.

Spotify HiFi is the streaming music service’s latest attempt to make the streaming music profitable. Recently, Spotify signed a deal with The New York Times to help The Times get in front of millennials. In that promotion, new digital subscribers who purchase a one-year online subscription to The Times get Spotify free for one year.

In mid-February, Digiday reports that Spotify was talking to podcast producers about original shows including Gimlet, How Stuff Works and Pineapple Street Media. Some of these programs could appear on Spotify exclusively, says Nieman Lab. Digiday speculates that exclusive podcasts on the streaming music service could help Spotify raise additional revenue, increasing its value for a possible IPO. Spotify has offered podcasts for a while, but they are not easy to find. They are not available for desktop PCs unless they are accessed through Spotify Connect. They are available for Android and iOS though.  

Subscription News: Spotify Is Testing Hi-Fi Sound for Possible Premium Subscription

Source: Spotify

Insider Take:

The streaming music market has been struggling to become profitable, prompting a variety of experiments including new products and services, price testing and business model adjustments. Also, with internet radio station Pandora entering the streaming market and Amazon launching its own premium streaming music service, there is more competition than ever. Spotify is smart to try different business models, price points and products as long as their efforts are strategic and not just throwing mud at the wall to see what sticks.

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