Spotify CEO Daniel Ek Announces Expansion of Subscription Options and Bundle Plans

Spotify CEO Daniel Ek Announces Expansion of Subscription Options and Bundle Plans

By Marcus Stevenson

December 30, 2024 at 04:08 AM

Spotify CEO Daniel Ek has announced plans to expand the platform's subscription offerings and bundles as part of a strategy to optimize its value-to-price ratio. This development comes amid industry controversy over the company's recent pricing structures and audiobook integration.

Spotify logo on white background

Spotify logo on white background

The streaming giant plans to introduce several new subscription tiers, including:

  • A dedicated audiobook-only tier
  • A music-only tier
  • Various flexible payment options
  • Market-specific plans (such as day passes and week passes in Southeast Asia)

This expansion builds upon Spotify's historical subscription evolution, which began with individual plans and gradually incorporated family plans, duo options, and regional payment variations.

However, the National Music Publishers Association (NMPA) has expressed strong opposition to these changes, particularly regarding the audiobook-only option. NMPA President David Israelite criticized the move as potentially unlawful, stating it could reduce songwriter payments by reclassifying their music service as an audiobook bundle.

The controversy centers around the 2022 settlement that established mechanical royalty rates of 15.35% for 2023-2027. The NMPA views Spotify's bundling strategy as a potential violation of this agreement.

NMPA music bundling image

NMPA music bundling image

Man wearing green shirt at screen

Man wearing green shirt at screen

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