Spotify: More expensive subscription allegedly this year
Bloomberg says Spotify plans to offer a more expensive subscription this year. Music publishers, however, are sharply criticizing the audiobook subscription.
Spotify is also becoming more expensive because of audiobooks. One US music association is not happy about this.
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Spotify is in turmoil: while music publishers are heavily criticizing the streaming service's audiobook efforts, the service is preparing a new and more expensive subscription tier, according to a Bloomberg report.
At least in the US, Spotify's new Hi-Fi subscription is set to be launched this year, Bloomberg reports. It will not be a separate subscription, but an additional option that can be added to existing subscriptions - such as Basic, Student or Family. The surcharge for the Hi-Fi option is said to be around 40 percent of the respective subscription costs.
The main argument for the new option is said to be lossless streaming. There have been reports of such a hi-fi option for years, which the Swedish streaming service itself has repeatedly fueled. According to Bloomberg, subscribers to the upcoming additional option will also have access to improved playlists that automatically adapt to users' preferences. Spotify is already testing an AI that can create playlists based on text input.
Anger over audiobook subscription
Meanwhile, the US Music Publishers Association (NMPA) has sharply criticized Spotify's audiobook initiative: in a complaint to the US Federal Trade Commission (FTC), the publishers describe it as a "scam" designed to increase profits at the expense of users and musicians. The music association complains that Spotify has implemented its audiobook-related price increases without any alternative.
Spotify also justified its price increase last year with the increased number of audiobooks on the service. Users with a subscription in the US can listen to 15 hours of audiobooks per month with their normal subscription at no extra charge. The music publishers complain that users were unable to opt out. The NMPA is particularly annoyed that payments to musicians will be reduced as a result: the association expects 150 million US dollars less money for artists in the first year, reports Engadget. In Germany, Spotify has not yet officially included audiobooks in the subscription.
(dahe)
