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 Delano Thompson

December 30, 2024 at 03:10 AM

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

This development comes amid a lawsuit from the Mechanical Licensing Collective (MLC), filed in May 2024, alleging that Spotify has underpaid royalties to publishers and songwriters through its bundling strategy.

Phone displaying Spotify music app

Phone displaying Spotify music app

Key details about the new Basic tier:

  • Costs $10.99/month (one dollar less than Premium)
  • Excludes audiobook access
  • Available only for individual subscribers
  • Limited to U.S. users
  • Restricted to "eligible" users only

The Basic plan's availability appears limited, as it's not prominently displayed on Spotify's subscription page or mentioned in their FAQ section. This follows a similar rollout in the United Kingdom earlier this month.

The timing is notable as Spotify recently reported $100 million in royalty savings since implementing bundled offerings in March. While the company now offers a non-bundled option, the vast majority of subscribers remain on the bundled Premium plan, which includes 15 hours of audiobook access.

NMPA music bundling image

NMPA music bundling image

Man wearing green shirt at screen

Man wearing green shirt at screen

Family and couple plan subscribers currently have no music-only option available, and must remain on bundled plans that include audiobook access.

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