After a recent price increase across its subscription plans, Spotify has announced a new “Basic” tier for $10.99 per month in the United States. This new plan offers all the benefits of Spotify Premium but excludes the monthly 15 hours of audiobook listening time that is included in the standard Premium plan.
The standard Spotify Premium Individual plan, which provides ad-free music listening, offline access, unlimited skips, and 15 hours of audiobook listening per month, saw its price rise from $10.99 to $11.99 per month earlier this month. In contrast, the new Basic plan, priced at $10.99 per month, caters to users who primarily listen to music and podcasts and do not need audiobook access. The Family version of the Basic plan is available for $16.99 per month, offering the same features for multiple users.
Spotify’s updated pricing structure in the U.S. is as follows:
- Spotify Basic (ad-free music only): $10.99/month
- Spotify Premium Individual (ad-free music + 15 hours of audiobook listening per month): $11.99/month
- Spotify Premium Duo: $16.99/month
- Spotify Premium Family: $19.99/month
- Audiobook Access (15 hours of audiobook listening per month): $9.99/month
The introduction of the Basic plan aligns its price with Apple Music, which also costs $10.99 per month. However, it’s worth noting that Spotify Basic offers inferior audio quality compared to Apple Music and Amazon Music Unlimited, both of which are priced similarly.
This new tier appears to be a response to the needs of users who do not utilize the audiobook feature. Despite this, the new Audiobook Access plan for $9.99 per month remains available for users who want audiobooks without subscribing to the full Premium plan. This plan includes 15 hours of audiobook listening per month and access to Spotify’s ad-supported music service.
Spotify’s recent price increases, which were partly justified by the addition of new audiobook offerings, have made the company the second-largest provider of audiobooks after Audible. The new Basic plan, devoid of audiobook access, is a strategic move to cater to music and podcast listeners who do not require the additional audiobook content.
Spotify continues to experiment with its offerings to maximize subscriber revenue. The company is reportedly planning a $5-per-month HiFi lossless audio add-on, which could launch later this year, three years after the initial announcement of a new high-resolution audio tier.
These pricing and plan adjustments are part of Spotify’s broader strategy to become a profitable and sustainable business. By diversifying its subscription offerings and introducing new content and advertising options, Spotify aims to appeal to a wider range of users and better meet their specific needs.