Spotify's Basic Plan Exists — But New Users Can't Actually Subscribe to It

Spotify's Basic Plan Exists — But New Users Can't Actually Subscribe to It

By Marcus Bennett

December 30, 2024 at 03:01 AM

Spotify's 'Basic' plan availability has become a point of controversy, with questions arising about its accessibility to subscribers. Here's what you need to know about Spotify's unbundled Basic tier:

Key Facts:

  • Basic plans are only available to existing subscribers
  • New subscribers cannot access the unbundled Basic plan
  • Family and Duo bundled Premium plans can be downgraded to Basic
  • Spotify has shifted over 98% of its plans into bundles

Troll statue beside red brick wall

Troll statue beside red brick wall

Spotify's Position:

  • Claims Basic plan isn't being buried
  • Sent email notifications about the expanded option
  • Maintains transparency about plan options
  • Disputes claims of intentionally hiding the Basic tier

Red arrow points at Spotify graph

Red arrow points at Spotify graph

Industry Response:

  • Music publishers criticize Spotify's shift to bundling
  • The Mechanical Licensing Collective has filed a lawsuit
  • NMPA (National Music Publishers' Association) is pushing for legislative changes
  • Publishers raise concerns about potential royalty reduction

Financial Impact:

  • Bundled plans generate more revenue for Spotify
  • Bundled offerings reduce royalty payment costs
  • Company reports significant savings from bundling strategy
  • Pricing structure favors bundled over Basic subscriptions

Access to Basic Plan:

  • Requires existing subscription
  • Can be found through account settings
  • Available through subscription options page
  • Discoverable mainly through direct navigation or referral

NMPA music bundling image

NMPA music bundling image

Man wearing green shirt at screen

Man wearing green shirt at screen

The introduction of the Basic plan appears to serve both as a response to industry criticism and as a strategic business move, balancing user choice with profitability while navigating ongoing legal and regulatory scrutiny.

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