Spotify Introduces Basic Music-Only Plan in US After Moving 97% of Users to Bundled Premium

Spotify Introduces Basic Music-Only Plan in US After Moving 97% of Users to Bundled Premium

By Marcus Bennett

December 30, 2024 at 03:11 AM

Spotify has launched a new 'Basic' music-only subscription tier in the United States, priced at $10.99 per month, following the company's controversial move to switch 97% of its Premium subscribers to a bundled offering that includes audiobooks.

The Basic tier excludes audiobook access, which remains available in the Premium subscription at $11.99 monthly with 15 hours of audiobook listening. However, this new option is currently limited to individual subscribers only, with no equivalent plans for couples or family accounts.

This launch comes amid legal challenges, as the Mechanical Licensing Collective (MLC) filed a lawsuit against Spotify in May 2024, alleging underpayment of royalties to publishers and songwriters due to its bundling strategy.

Phone displaying Spotify music app

Phone displaying Spotify music app

Key points about the new Basic tier:

  • Available only to "eligible" U.S. users
  • Not prominently advertised on subscription pages
  • Follows a similar rollout in the United Kingdom
  • Absent from FAQ sections and new subscriber options

The introduction of this tier comes after Spotify reported $100 million in royalty savings since implementing bundled offerings in March. The company's move appears strategic, providing a technical alternative for dissatisfied customers while maintaining its predominantly bundled subscriber base.

NMPA music bundling image

NMPA music bundling image

Man wearing green shirt at screen

Man wearing green shirt at screen

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