Amazon Music has increased its Unlimited subscription prices in the U.S., while introducing a new non-audiobook 'Standard' option at lower rates.

Key Price Changes:

• Prime members: Unlimited Individual increases to $10.99/month ($1 increase)
• Non-Prime members: Unlimited Individual now $11.99/month
• Family plan: Increases by $3 to $19.99/month ($199/year)
• Annual Prime Individual plan: Increases from $99 to $109

The new pricing structure takes effect immediately for new subscribers and after March 5th for existing customers. Importantly, Amazon Music now offers two distinct tiers:

1. Amazon Music Unlimited

• Includes audiobook access
• Higher pricing structure
• Similar to Spotify's bundled approach

2. Amazon Music Standard

• No audiobook access
• Maintains previous pricing ($9.99/month for Prime members)
• Family plan also available at pre-increase rates

This move follows Spotify's strategy of bundle-based pricing, which affects mechanical royalty calculations for songwriters and publishers. Under Phonorecords IV determination, bundled revenue receives different treatment than music-only plans. Currently, about 20% of Amazon Music's U.S. subscribers use bundled plans, compared to Spotify's 99%.

The timing is particularly significant given Amazon Music's recent "artist-centric" partnership with Universal Music Group in December 2024, and their addition of monthly audiobook access to Unlimited plans in November 2024.

These changes could significantly impact mechanical royalties for creators, especially considering Universal Music Publishing Group's recent direct agreement with Spotify. The industry will be watching closely to see how this new pricing structure affects both subscriber behavior and royalty distributions.

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