Spotify Basic in the US costs $10.99 per month, excluding audiobooks

Spotify is offering a $1 per month discount to listeners who don't mind access to audiobooks as part of their subscription.

The audio streaming giant on Friday announced a new basic subscription plan for $10.99 per month, a single-user account that gives users ad-free access to millions of songs and podcast episodes but doesn't include the audiobook perks currently included in the regular premium individual plan, which costs $11.99 per month.

“Enjoy all the music streaming benefits of our premium plan without the monthly audiobook listening minutes,” Spotify said when announcing the basic plan. With its more expensive premium plan, Spotify is offering access to 15 hours of audiobook listening time each month from a catalog of more than 250,000 titles.

Spotify's Basic plan launch comes less than three weeks after the company increased the prices of most of its existing plans. The Individual plan increased by $1 from $10.99 to $11.99 per month, while the Family plan, which allows access for up to six people per household, increased by $3 from $16.99 to $19.99 per month. The Premium Duo tier, which offers ad-free music listening (and 15 hours of audiobook listening time per month) across two accounts, increased by $2 per month to $16.99.

Meanwhile, Spotify in the US also offers an audiobook-only plan that includes 15 hours of audiobook listening time for $9.99 per month.

The introduction of the audiobook access tier (as of March 1) allows Spotify to pay lower music licensing fees for plans that bundle music and audiobooks. The 2022 settlement agreement between the National Music Publishers Association and streaming services includes an exception for bundles (such as Amazon Prime and Apple Music + Apple News), which Spotify's new music plus audiobooks plan falls into. Such plans lower the mechanical licensing fees the company pays in the US.

Last week, the NMPA filed a complaint with the FTC against Spotify, primarily because it opposes music and audiobook bundling, which the association estimates reduces mechanical royalties to songwriters and artists by $150 million per year. While Spotify acknowledges that bundling allows it to keep royalty rates low, the company argues that creators' overall revenues continue to increase.

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