Spotify’s Basic plan returns to $11 a month by cutting audiobooks
Spotify's Basic plan is $11/month, excluding audiobooks, amid controversy over royalty payments.
Spotify has rolled out a new Basic plan for US subscribers priced at $11 per month, but it excludes 15 hours of audiobook content, which was recently added to its Premium plan. This decision mirrors a similar plan introduced in the UK, which also involves a slight decrease in price compared to the full Premium tier.
The decision to remove audiobooks from its Basic plan has sparked controversy within the music industry. The National Music Publishers' Association has accused Spotify of using its audiobook integration as a tactic to decrease royalty payments to artists, claiming it will save the company approximately $150 million in music royalties over the next year.
In response, Spotify has denied any wrongdoing and stands by its pricing strategy. The Basic plan can be activated by existing users through their account settings, while new subscribers can select it upon signing up. This move comes amidst broader cost-cutting measures by Spotify, including layoffs and potential changes to its royalty model.