Spotify Defends Basic Plan Accessibility While New Users Can't Actually Subscribe to It
Spotify is facing scrutiny over its handling of its new unbundled 'Basic' subscription plan, with questions arising about whether the company is intentionally making it difficult for users to find this cheaper option.
Troll statue beside red brick wall
Key findings about Spotify's Basic plan:
- New subscribers cannot access the Basic plan; it's only available to existing subscribers
- Basic plans are cheaper and simpler but pay higher royalties to artists
- Over 98% of Spotify's plans are now bundled offerings
- Existing Family and Duo Premium subscribers can downgrade to Basic
- Spotify claims to have notified all subscribers about the Basic option via email
Red arrow points at Spotify graph
The controversy stems from several factors:
- Spotify has saved $100 million in royalty payments since introducing bundled offerings
- The National Music Publishers' Association (NMPA) is challenging Spotify's bundling practices
- The Mechanical Licensing Collective has filed a lawsuit
- Federal regulators are reviewing the situation
Industry experts suggest Spotify may be offering the Basic plan to:
- Counter criticism about aggressive bundling practices
- Provide a defense against legal challenges
- Demonstrate market choice while steering users toward bundled options
The NMPA is considering additional litigation regarding Spotify's use of lyrics, music videos, and podcasting content. This ongoing dispute highlights the tension between streaming platforms' business models and fair compensation for artists and publishers.
NMPA music bundling image
Man wearing green shirt at screen
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