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

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

Key Details About the New Basic Tier:

• Costs $10.99 monthly (one dollar less than Premium)
• Excludes audiobook access
• Available only for individual subscribers
• Limited to U.S. users
• Not available for family or couple plans

The new Basic plan appears to have limited visibility on Spotify's platform, with no clear promotion on the subscription page or FAQ section. This follows a similar rollout pattern seen in the United Kingdom earlier this month.

The company has reported significant financial benefits from its bundling strategy, with $100 million in royalty savings since March. However, this has led to increased scrutiny from music industry stakeholders and legal entities.

While Spotify now offers this unbundled option, the company maintains strict eligibility requirements, with access limited to "eligible" U.S. users, though specific eligibility criteria remain unclear beyond geographic location.

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