Spotify Introduces Lower-Cost Music-Only Plan After Moving 97% of Users to Premium Bundle
Spotify has launched a new music-only subscription tier in the United States, following a controversial move that previously switched 97% of its Premium subscribers to a bundled offering that includes audiobooks.
The new 'Basic' subscription costs $10.99 per month and excludes audiobook access, while the Premium tier costs $11.99 and includes 15 hours of audiobook content. However, this Basic option is currently only available for individual subscribers, not for couple or family plans.
Phone displaying Spotify music app
This subscription restructuring comes amid legal challenges, as the Mechanical Licensing Collective (MLC) has filed a lawsuit against Spotify in May 2024, alleging underpayment of royalties to publishers and songwriters due to its bundling strategy.
The availability of the Basic plan appears limited, as it's not prominently displayed on Spotify's subscription page or mentioned in their FAQ section. The company states the plan is only available to "eligible" users in the United States, though the exact eligibility criteria remain unclear.
Spotify has reportedly saved $100 million in royalty payments since implementing bundled offerings in March. This latest move mirrors a similar strategy recently deployed in the United Kingdom, where Spotify also introduced a music-only tier.
NMPA music bundling image
Man wearing green shirt at screen