Spotify, the world's leading music streaming service, has reiterated its plans to launch a "lossless audio" feature, initially announced in 2021 but not yet released. Competing platforms like Tidal, Apple Music, and Amazon Music have already introduced high-fidelity audio options to their subscribers. During the company's third-quarter earnings call, CEO Daniel Ek confirmed that the lossless audio package, named "Super Premium," is forthcoming, although he did not specify a release date.
The "Super Premium" tier is expected to cost $5 more than the current Premium subscription. In addition to lossless audio, it will offer a variety of other services. Ek expressed confidence that Spotify's user base would be willing to pay extra for this enhanced package due to their brand loyalty. His remarks emphasized Spotify's ongoing commitment to creating consumer-friendly services that add value for content creators.
Despite the delay in launching lossless audio, Spotify's financial performance continues to show robust growth. As of the third quarter of 2024, Spotify has 640 million monthly active users, an increase of 14 million, and 252 million paid subscribers, up by 6 million. The company's revenue rose to 3.99 billion euros, marking a 19% year-over-year increase, with net profit reaching 300 million euros, a substantial surge of approximately 362%. Premium membership revenue grew by 24%, contributing to a record-high gross margin of 31.1%.
