Spotify Downplays Hi-Res Streaming as Amazon Enters and Qobuz Welcomes It

Spotify downplayed Amazon’s move into hi-resolution music, focusing on its fledgling podcast service and artist programs (see 1909120017). Amazon's offering a two-tier premium music service in CD-quality and 24-bit/192 kHz resolution, it said Tuesday. Spotify hasn't talked about "higher fidelity,” said Paul Vogel, head-financial planning and analysis, treasury and investor relations. “It’s not really something that has been a big differentiator,” he said, citing Tidal and its hi-res service. Important to Spotify and its subscribers are the user interface, algorithms, playlists and "discoverability,” Vogel told investors. Tidal didn't comment. Musicians are “excited” about the ability for fans to stream their music “as it was originally recorded,” said Steve Boom, vice president-Amazon Music. On the threat of big tech companies' leverage in the music streaming market with smartphones and smart speakers, Vogel deflected to Spotify’s growth trends. Citing his 3.5-year stint, Vogel said the service had 25 million subscribers and under 100 million users when he joined; now, Spotify boasts 232 million monthly average users and 108 million subscribers. “We fully recognize the fear” about the three largest tech companies as competitors, Vogel said. Despite competitors’ big pockets, Spotify is spending “as much, if not more, on innovation and R&D” in music and audio, he said. Vogel said Spotify's “ubiquity” is its strength -- being available “just about everywhere” except for “a couple of Apple products.” Qobuz welcomed Amazon to the hi-res music market. Qobuz USA Managing Director Dan Mackta said it “validates our business and underscores the growth in demand for higher-quality streaming."