Spotify Defends Basic Plan Visibility While New Users Can't Access Unbundled Tier
Spotify's 'Basic' plan accessibility has become a point of contention, with questions arising about whether the company is intentionally making its unbundled option harder to find.
Key findings about Spotify's Basic plan:
- New subscribers cannot directly access the Basic plan
- Only existing subscribers can downgrade to Basic
- Both Family and Duo Premium subscribers can switch to Basic
- Spotify claims they email-notified all subscribers about the Basic option
Troll statue beside red brick wall
The company has shifted over 98% of its plans into bundles, according to recent data. This move makes economic sense for Spotify, as bundled plans:
- Generate more revenue through higher pricing
- Reduce royalty payment costs
- Create higher user retention
Red arrow points at Spotify graph
Potential reasons for maintaining the Basic plan:
- Response to criticism from music publishers
- Defense against legal challenges
- Protection against regulatory scrutiny
- Counter to NMPA's (National Music Publishers' Association) concerns
Current challenges:
- Ongoing lawsuit from the Mechanical Licensing Collective
- FTC referral regarding bundling practices
- Potential litigation from NMPA over infringement claims
- Congressional attention to Spotify's business practices
The Basic plan's existence allows Spotify to argue it offers consumer choice, while the limited accessibility suggests a strategic approach to maintaining higher-revenue bundled subscriptions.
NMPA music bundling image
Man wearing green shirt at screen