ENTERTAINMENT

Spotify: Possibly more expensive subscription later this year

19/06/2024

The fuss about Spotify: While music publishers heavily criticize the streaming service’s audio book efforts, the service is rolling out a new and more expensive subscription tier, according to a Bloomberg report.

Spotify’s new Hi-Fi subscription is set to launch later this year, at least in the US, Bloomberg report. This should not be a separate subscription, but an additional option that can be added to existing subscriptions – such as Basic, Student or Family. The price premium for the Hi-Fi option should be around 40 per cent of the respective subscription cost.

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The main argument for the new option should be lossless streaming. There have been reports about such a Hi-Fi option for years, which the Swedish streaming service itself has repeatedly encouraged. According to Bloomberg, subscribers of the upcoming additional option will also have access to improved playlists that will automatically adapt to the user’s preferences. Spotify is already testing an AI that can create playlists based on text input.

Trouble with audiobook subscriptions

Meanwhile, the American music publishers’ association NMPA has expressed sharp criticism of Spotify’s audio book initiative: in a Complaint to the US Federal Trade Commission (FTC). Publishers have described it as a “scam” aimed at increasing profits at the expense of users and musicians. The music association complains that Spotify has imposed price hikes on audiobooks without any alternative.

Spotify also justified its price hike last year with the growing number of audiobooks on the service. Users subscribing in the US can enjoy 15 hours of audiobook listening per month with their regular subscription at no additional cost. Music publishers complain that users could not decide against this. What particularly troubles the NMPA is that payments to musicians will decrease as a result: the association expects $150 million less money for artists in the first year, Engadget reports. In Germany, Spotify has not yet officially included audiobooks as a subscription option.

(There)