Introduction to Spotify’s Tiered Structure

Spotify’s tiered structure is set to become more complex this year. The music streaming app plans to introduce a new feature, HiFi streaming, which will come with an additional monthly fee of $6. This feature, which has been in the works for nearly four years, is expected to be part of a new tier called Music Pro. To make this new tier more appealing, Spotify may also offer early-access concert tickets, although Ticketmaster will still be involved in the process.

Details of the New HiFi Streaming Tier

According to a report from Bloomberg, citing several anonymous sources, the new HiFi streaming tier will be an add-on to the existing $12 Spotify Premium plans. However, it is unclear whether this new tier will be available to all members of a duo or family plan, or to students who pay $6 a month. The report also states that Spotify is still working out the specifics and has not announced a release timeline. This is not surprising, given that Spotify has been working on the details of HiFi streaming since early 2021.

Incentives for HiFi Audio

To make the new HiFi streaming tier more attractive, Spotify may offer additional incentives. One of these incentives is access to presale and better seat selection from major ticket sellers. According to Bloomberg, Spotify has had preliminary talks with promoters and ticket companies. While this does not mean that users will be able to avoid Ticketmaster, it may give them an advantage over scalpers.

AI-Driven Features

Spotify is also exploring the use of AI-driven features, including the ability for users to remix multiple tracks from artists using AI. While this feature may not be available immediately, Spotify plans to roll out these features over time. If users are only interested in HiFi audio, they may be able to access it first, pending the feature’s release after four years of waiting.

Background on Spotify’s Lossless Audio Plans

Spotify executives had previously stated that they would release their lossless audio plans "eventually" in 2023. There were hopes that HiFi would be released two years ago, and again in 2024. However, with no word from the streaming service, it was easy to assume that lossless audio was no longer a priority. Even with these latest rumors, it is uncertain whether Spotify will ever offer lossless audio compression. Apple currently uses its own Apple lossless Audio Codec for up to 24-bit/192 kHz compression, which the company claims is "virtually indistinguishable" from lossless audio.

Impact on Listeners

For regular listeners using non-professional earbuds, the difference between a track played on Apple Music, Spotify, or Tidal’s Max HiFi FLAC may be difficult to distinguish. Nevertheless, Spotify needs to continue innovating to maintain its growth. The company posted its first-ever year of profitability in 2024.

Potential Price Hikes

Hopefully, the new tier structure will not include further price hikes. Last year, Spotify increased the cost of every year by $1 or $2 a month and introduced a $10 Audiobook-centric subscription. It remains to be seen how the new Music Pro tier will be priced and whether it will be available to all users.