Spotify CEO Daniel Ek announced plans to expand subscription options and bundles as part of the company's strategy to optimize its value-to-price ratio for consumers.

The streaming giant plans to introduce several new tiers, including dedicated music-only and audiobook-only subscriptions. This expansion builds upon Spotify's existing offerings, which have evolved from single-user plans to include family plans, Duo subscriptions, and market-specific payment options like day passes in Southeast Asia.

Ek emphasized that these changes aim to provide maximum flexibility for consumers while expanding Spotify's subscriber base. The company's strategy focuses on balancing added value with fair pricing across different markets.

However, the National Music Publishers Association (NMPA) has expressed strong opposition to these changes, particularly regarding the audiobook-only option. NMPA President David Israelite criticized the move as potentially unlawful, arguing it would reduce songwriter payments by reclassifying Spotify's music service as an audiobook bundle.

This conflict stems from a 2022 settlement that established mechanical royalty rates of 15.35% for 2023-2027. The NMPA has indicated it will explore all options to challenge Spotify's new bundling strategy.

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