Spotify's Basic Plan Exists — But New Users Can't Actually Subscribe to It
Spotify's new unbundled 'Basic' subscription plan faces scrutiny over its accessibility and visibility to potential subscribers. Here's what you need to know:
Key Facts About Spotify Basic:
- Only available to existing subscribers
- Not accessible to new subscribers
- Can be accessed by downgrading from Family and Duo Premium plans
- Existing subscribers were notified via email about the option
Troll statue beside red brick wall
Why This Matters:
- Spotify has moved 98% of its plans into bundles
- Bundled plans are more profitable for Spotify
- Bundled plans result in lower royalty payments to artists
- New subscribers must choose bundled options
Red arrow points at Spotify graph
Industry Response:
- Music publishers criticize Spotify's bundling strategy
- The Mechanical Licensing Collective has filed a lawsuit
- NMPA (National Music Publishers' Association) is pushing for legislative changes
- Publishers question potential infringement related to lyrics, music videos, and podcasting
Possible Motivations:
- Basic tier may serve as defense against criticism
- Allows Spotify to claim market choice
- Helps counter accusations of forced bundling
- Could mitigate legal and regulatory pressures
NMPA music bundling image
Financial Impact:
- Bundled offerings have resulted in significant royalty savings
- Spotify reports $100 million in royalty savings since March
Man wearing green shirt at screen
This ongoing situation highlights the tension between streaming platforms' profitability and fair compensation for artists, while raising questions about consumer choice and transparency in subscription offerings.
Related Articles
Qobuz Reveals Industry-Leading ARPU and Royalty Rates — Can It Challenge Spotify's Market Dominance?
