Spotify’s Lossless Launch Ended Up Boosting Qobuz by 500%, According to the Company’s Director

This report lays out what actually drove thousands of new signups in just a few days.

Spotify finally launched lossless streaming after years of delays, offering 24-bit FLAC to Premium users in dozens of markets. Many expected this upgrade to put pressure on niche services like Qobuz. But instead, Qobuz saw more attention, more trial signups, and unexpected momentum.

Here is what actually pushed Qobuz into its biggest growth spike yet.

Qobuz’s “Accidental” Win

Qobuz had anticipated Spotify’s move for years. Managing Director Dan Mackta told SoundGuys that the company saw modest cancellations immediately after Spotify Lossless launched. However, its user base has only expanded since.

Spotify’s entry into high-fidelity streaming gave awareness to lossless audio, so listeners were suddenly exposed to the concept of better sound quality.

Meanwhile, Qobuz had been championing the message since 2007. The company has cultivated a loyal following of album-focused, record-store-style enthusiasts who listen actively. And given that 70% of music streamers usually play music in the background, that’s no easy feat.

The Gen-Y Boycott That Supercharged Growth

Qobuz’s momentum accelerated when Spotify faced backlash over recruitment ads for the US Immigration and Customs Enforcement (ICE). These sparked widespread boycotts among younger users.

A Spotify spokesperson defended the move, saying the ads complied with US advertising policy. Even so, Gen-Y users launched mass cancellations across social media platforms.

And while some previous Spotify users probably migrated to other free platforms, others obviously upgraded. In fact, those boycotts reportedly drove a 500% surge in Qobuz’s weekly subscriber base within days, according to FutureAudiophile.

Its student plan, which costs $4.99 per month, also made it accessible to younger listeners seeking alternatives.

However, the ICE ads are just the tip of the iceberg. Spotify has been dealing with controversy since before it. Earlier, the streamer faced criticism due to CEO Daniel Ek’s investment in a company developing AI-powered military drones.

More recently, verifying AI-generated band Velvet Sundown as an artist sparked outrage as well, reinforcing the sense among some listeners that Spotify was out of step with their values.

This proved the perfect storm for Qobuz.

Can Qobuz Keep the Momentum?

Qobuz’s recent surge shows how quickly listeners can move when values and timing line up. A lossless rollout from the market leader and a high-profile boycott gave the service more exposure than any marketing campaign could buy.

The harder part starts now. Together, Spotify, Apple Music, and Amazon Music still control around 90% of the US streaming market. Qobuz remains a niche player, and Managing Director Dan Mackta says the company needs roughly 1% of that market to become sustainably profitable.

Its typical one-month free trial converts at about 40%, but it is not clear how many of the new signups from the ICE backlash will stick around.

If even a fraction of those listeners stay for the sound quality, editorial curation, and perceived independence that drew them in, Qobuz’s “accidental” win could turn into a lasting foothold.

If not, the spike will go down as a rare moment when the biggest name in streaming ended up doing its smallest rival a huge favor.