New code in Spotify’s app references the long-awaited ‘lossless’ tier

Code references discovered in the Spotify desktop and mobile apps suggest the long-awaited lossless audio tier is still under development, potentially offering up to 24-bit/44.1 kHz audio quality; however, previous leaks have not materialized into a launch, and executives have only hinted at premium offerings for "super fans" without providing a specific timeframe, despite signing new deals with labels like Warner and Universal Music.

Analysis

Newly discovered code references in Spotify's desktop and mobile applications suggest continued development of its long-awaited lossless audio tier, potentially offering up to 24-bit/44.1 kHz quality. This progress, however, is set against a backdrop of a four-year delay since the initial 'Spotify HiFi' announcement in 2021 and previous unfulfilled indications, contributing to a speculative market tone despite the mildly positive sentiment signal. Spotify executives, including CEO Daniel Ek, have offered vague commentary on 'premium products for super fans' without firm timelines, though Chief Business Officer Alex Norstrom affirmed in the Q1 2025 earnings call ongoing work towards higher tiers. Significantly, new licensing agreements with major labels like Warner Music Group (WMG) and Universal Music Group, concluded in early 2025, could resolve past impediments and pave the way for such a launch, with a Bloomberg report also speculating on a 'Music Pro' tier arriving later in 2025, a report Spotify declined to comment on.

Key Decisions for Investors

• Investors should monitor Spotify for definitive launch announcements and pricing details of its potential lossless tier, as successful implementation could drive ARPU growth and subscriber loyalty, but the historical delays necessitate a cautious outlook.
• The new label agreements, such as with Warner Music Group, represent a crucial step in potentially enabling this premium product expansion; focus should be on the terms and impact on future content costs if the tier launches.
• Given the extended development timeline, investors should carefully assess market reception and adoption rates of any new high-fidelity tier from Spotify, particularly concerning its ability to attract and retain the targeted 'super fan' segment.