Spotify is making more changes to its subscription offerings.
On Friday, the streaming app introduced a new “basic” premium plan that offers its usual perks but without audiobooks. Priced at $10.99, this plan includes the standard streaming benefits but does not offer the monthly audiobook time included in the full premium plan.
“Enjoy the music streaming benefits of your Premium plan without the monthly audiobook listening time,” Spotify announced.
Earlier this month, Spotify increased its premium subscription prices to improve profit margins. The cost for the individual plan went up from $10.99 to $11.99 per month, the duo plan jumped to $16.99 per month, and the family plan increased to $19.99 per month.
Additionally, the company offers an audiobook-only plan that includes 15 hours of listening time for $9.99 per month. Released on March 1st, the audiobook access plan allows Spotify to lower music-licensing fees for plans that blend music and audiobooks. Thanks to a 2022 deal, bundles like Spotify’s music-plus-audiobook tier benefit from reduced licensing rates, similar to Amazon Prime and Apple Music.
Recently, Spotify has attempted to boost margins by cutting marketing spending and laying off staff after years of heavy promotions and major investments. According to Bloomberg News, the company plans to release a more expensive plan later this year, reportedly costing $5 more per month. This plan is said to offer better audio quality and new features for creating playlists and managing songs.
