Spotify's long-awaited high-fidelity audio tier will arrive as an add-on, according to a report from Bloomberg citing a source familiar with the matter. The add-on is expected to cost $5 on top of the standard $11.99 which a Spotify subscription is going to cost from July onwards, totalling $16.99.

It was previously rumored that the upgraded tier would be priced at $20, so this lower price is a welcome surprise. As recently reported, leakedUI elements by Reddit user OhitsTomfrom the previous month indicated that Spotify HiFi would support bitrates up to 2,117 kbps, and 24-bit/44.1 KHz audio would also be enabled for select songs utilising the FLAC codec.

Along with high-fidelity audio, users will reportedly also be able to create playlists based on their usage, occasions, and time of the year. The playlists will then be able to learn from user behavior, and be able to create custom mixes through some flavor of machine learning.

However, it is worth noting that Spotify's primary competitor, Apple Music, has had high-resolution lossless audio for quite a while now, even without requiring any additional subscription fee. Bloomberg's report states that the additional revenue generated from the HiFi tier could be in the hundreds of millions, which can then be used to pay artists. However, the publication adds, the actual number of people who will be willing to pay extra for the higher-tier plan remains to be seen.