Spotify Introduces Affordable ‘Basic’ Premium Plan Excluding Audiobooks

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Spotify has introduced a new Basic subscription plan priced at $10.99 per month, aimed at users who prioritize music and podcasts over audiobooks, effectively offering a $1 monthly discount compared to its regular Premium Individual plan.

The Basic tier, announced by the audio streaming giant on Friday, excludes the 15 hours of audiobook listening time provided in its higher-priced Premium plans. Spotify’s Premium Individual plan, currently at $11.99 per month, continues to include access to a vast library of audiobooks alongside ad-free music and podcasts.

“Enjoy the music streaming benefits of your Premium plan without the monthly audiobook listening time,” Spotify stated in its announcement of the new tier.

The move comes shortly after Spotify raised prices on several of its existing subscription plans. The Premium Individual plan saw a $1 increase from $10.99 to $11.99 per month, while the Family plan, accommodating up to six household members, rose by $3 to $19.99 per month. The Premium Duo plan, offering two accounts with ad-free music and 15 hours of audiobook listening, now costs $16.99 per month after a $2 increase.

Premium Individual

  • Enjoy offline and ad-free music listening anytime, anywhere with unlimited skips.
  • Your plan gives you 15 hours of audiobook listening time per month from our subscriber catalog of over 250,000 titles. $11.99/month.

Basic

  • Enjoy the music streaming benefits of your Premium plan without the monthly audiobook listening time. Starting at $10.99/month for eligible users.

Premium Duo

Our plan for two people living together.

  • Two people get all the benefits of Premium–offline and ad-free music listening–for less than two full-price Premium Individual accounts.
  • Duo plan managers have access to 15 hours of audiobook listening time per month from our subscriber catalog of over 250,000 titles. $16.99/month.

Premium Family

Our plan for up to 6 family members who live in the same household.

  • Each plan member gets the benefits of Premium, with separate accounts so recommendations are personalized to each user’s listening taste.
  • Family plan managers have access to 15 hours of audiobook listening time per month from our subscriber catalog of over 250,000 titles. $19.99/month.

Audiobooks Access

  • Get 15 hours of audiobook listening time from our audiobooks subscriber catalog each month. Your music listening experience will be on our free, ad-supported service. $9.99/month.

In addition to the new Basic plan, Spotify also offers an audiobooks-only subscription at $9.99 per month, providing 15 hours of audiobook listening time without music or podcasts.

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The introduction of bundled music and audiobook plans aligns with a 2022 settlement between the National Music Publishers Association (NMPA) and streaming services. These bundles allow Spotify to pay reduced music-licensing rates, a move that has sparked controversy. The NMPA recently filed a complaint with the Federal Trade Commission (FTC), arguing that these bundles could decrease mechanical royalty payments to songwriters and artists by $150 million annually.

Spotify has defended its position, asserting that while the bundled plans lower royalty rates for mechanical licenses, overall earnings for creators will continue to rise due to increased subscriber numbers and revenue from new services.

Despite the pricing adjustments and regulatory scrutiny, Spotify remains a dominant force in the streaming industry, continuously expanding its offerings to attract and retain a diverse subscriber base. The launch of the Basic plan underscores its strategy to cater to different consumer preferences and affordability thresholds in an increasingly competitive market.

As Spotify navigates these changes, the impact on both its business model and the broader music industry landscape remains a topic of keen interest and debate among stakeholders, including artists, publishers, and regulatory bodies.

Spotify, the largest music streaming platform globally, boasts over 615 million users, with 239 million among them subscribed to its premium services. Transitioning from free Spotify to Premium not only eliminates advertisements but also grants users the ability to download songs for offline listening, alongside other exclusive benefits.

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