Apple Music is reportedly making an adjustment in payout structure for Spatial Audio-formatted songs signaling a strategic shift in the streaming industry, emphasizing the growing significance of immersive audio experiences.

As reported by Bloomberg, prioritizing Dolby Atmos mixes allows apple Apple to not only to enhance artist royalties but also to strengthen its position in the market. This move aligns with Apple Music’s earlier commitment to Spatial Audio, a trend that gained substantial traction since its introduction in June 2021, offered as a complimentary feature to all subscribers. The rise of Spatial Audio reflects a broader trend in the industry, with users increasingly seeking a more immersive and spatially dynamic listening experience. Apple Music’s reported surge in monthly plays—exceeding 1,000% in 2022—further underscores the demand for this audio format.

Behind this financial adjustment, there’s a subtle strategy at play with this choice from Apple. Encouraging artists to embrace Spatial Audio could be a means for Apple Music to drive hardware sales. The compatibility of Apple devices, including iPhones, AirPods, HomePods, and MacBooks, with Dolby Atmos and Spatial Audio creates an ecosystem incentivizing users to invest in Apple products.

In contrast, Spotify, a major competitor, is rumored to be exploring a ‘Supremium’ tier, targeting audiophiles with 24-bit Lossless music and AI-powered playlist features. This potential offering at $19.99 per month showcases the ongoing competition among streaming platforms to cater to diverse user preferences and elevate the overall music streaming experience.