Spotify has finally introduced lossless audio for premium subscribers. What is lossless audio. Why would you want it. And how do you enable it.Well, everything you stream to your phone is compressed in some way, and that does degrade the quality. And lossless audio is uncompressed, which means it's the best audio quality you can get. How do you enable it.Well, all you got to do is go to your Spotify mobile app. You're going to tap on your profile button in the top left corner. It's going to bring up a few o ...

Core Viewpoint - Spotify is leveraging global price hikes, new label agreements, and product enhancements to enhance revenue, expand margins, and drive long-term growth [1][2] Revenue and Growth Drivers - Strong subscriber momentum and fresh content offerings are expected to lead to steady revenue acceleration and profitability gains through 2026 [1] - JP Morgan analyst Doug Anmuth raised the price forecast for Spotify from $740 to $805, citing pricing power and new label agreements as key long-term growth drivers [2] Pricing Strategy - Spotify raised prices in over 100 countries in August, impacting approximately 25% to 30% of premium subscription revenue [3] - These price hikes are estimated to generate around 380 million euros in annualized revenue [3] Subscriber Metrics - Anmuth forecasts foreign-exchange-neutral ARPU growth of 0.5% in Q3, 2% in Q4, and 4.6% in 2026, an increase from 2.3% in 2025 [3] Churn and Market Position - Churn is expected to remain limited due to Spotify's scale, content depth, and personalization features [4] - A potential U.S. price increase by late 2025 or early 2026 could provide additional upside [4] Label Agreements - Spotify has signed multi-year agreements with Sony, adding to previous deals with Universal and Warner [4] Product Enhancements - The introduction of a "Superfan Tier" and lossless audio for premium subscribers in over 50 markets is anticipated [5] - New features in the free tier, such as expanded on-demand capabilities and personalized playlists, are expected to enhance user engagement and drive premium conversions [5] Margin and Cash Flow Projections - Anmuth projects gross margins to reach 32.8% in 2026, with operating income margins of 13.9% and free cash flow of 3.5 billion euros, a 19% increase [6] - Revenue contributions from audiobooks, Marketplace, and advertising are expected to support margin expansion [6] Overall Outlook - Anmuth has become incrementally more positive on Spotify's outlook, forecasting 2026 revenue growth of 14.1% year over year in constant currency, driven by a 9% increase in premium subscribers and higher ARPU [7]