Spotify has launched a new “Basic” subscription plan in the United States, which offers users access to millions of songs and podcasts without ads for a price of $10.99 per month. In addition to a one-dollar difference compared to the Individual Premium plan, which now costs $11.99 per month, the main difference in this new plan is that it excludes audiobooks.
“Enjoy the benefits of streaming music from your Premium plan without the monthly listening limit for audiobooks,” Spotify said in a blog post where they introduced their new Basic plan.
Spotify’s most expensive Premium plans include 15 hours of monthly audiobooks from a catalogue of more than 250,000 titles. The launch of the Basic plan comes shortly after a price increase in most of its existing subscriptions. The Individual plan increased from $10.99 to $11.99 per month, the Family plan increased from $16.99 to $19.99 per month, and the Premium Duo plan, which offers two ad-free accounts and 15 hours of monthly audiobooks, increased from $14.99 to $16.99 per month.
In addition, Spotify in the United States offers an exclusive audiobook plan for $9.99 per month, which likewise includes 15 hours of audiobook listening. Since March 1, with the introduction of the audiobook access level, Spotify was able to negotiate lower music-licensing fees for combined music and audiobook plans. This move was made possible thanks to an agreement reached in 2022 between the National Music Publishers’ Association (NMPA) and streaming services, which includes exceptions for packages like the new Spotify plans.
However, last week, the NMPA filed a complaint with the United States Federal Trade Commission (FTC) against Spotify, arguing that the music and audiobook bundles will reduce royalty payments to composers and artists by $150 million annually. According to Spotify, it’s true that the bundles allow for lower fees, but the company argues that overall creator revenues will continue to increase.
