Spotify to Phase Out ‘Basic’ Subscription Tier?
The move would further impact songwriter royalties
Digital Music News (DMN) is reporting a series of updates to the language around Spotify’s ‘Basic’ subscription package, which hint that the platform is slowly phasing out the tier.
Why it matters:
In late 2023 Spotify integrated audiobooks into its Premium Individual, Family, and Duo plans, converting them into bundled subscription tiers.
Under the Phonorecords IV agreement, this meant it could pay lower mechanical royalty rates – a 2024 report by DMN suggests the shift saved Spotify $100 million in royalty payments between March and November 2024 alone.
In response to protests from rights owners, Spotify offered a little-publicized, music-only ‘Basic’ tier, through which it would have to pay the full royalty rate.
The way out:
Anyone now canceling their Basic plan is met with a message saying that once it’s canceled, it will no longer be possible to resubscribe to Basic.
DMN also highlights new language around the tier that further suggests it’s being wound down: “Basic is available for previously existing Premium subscribers.”
Spotify
Phonorecords IV
Tiered Subscription Strategy
Publisher and Platform Licensing Disputes
Streaming Royalty Pool Dilution
Artist Rights And Royalty Disputes
Streaming Platform Features
Royalty Reduction Via Bundling
Subscription Pricing
Subscription Bundling
Songwriter Royalties
Streaming Royalties
Terms of Service
Subscription Tier Removal
United States
Sweden
👋 Disclosures & Transparency Block
This story was written with information from Digital Music News.
We covered it because it’s news of a subscription change for Spotify.
