When Spotify first announced that it was getting a price hike for the first time, a lot of people already expected it since other streaming services have already done the same recently. Unlike others, Spotify is reverting back to its old monthly subscription fee.
Spotify is Back to $11 per Month
US subscribers would be happy to know that the popular streaming service is adding an option without the $1 increase to its subscription fee for the Basic tier, where users will have access to an ad-free experience as they listen to Spotify's content.
However, one selection is being removed, particularly audiobooks. It was a recently added feature where users will gain 15 hours of audiobook access as part of the new plan, as reported by Engadget, although it might not be a feature that subscribers would miss.
The increase was supposed to arrive in the US by July, but it has already been implemented in the UK with subscription prices going from £11 per month to £12 for the Premium service for the addition of audiobook access.
Spotify's move has been somewhat shrouded in controversy as it was accused of using the added access as a "scheme to increase profits by deceiving consumers and cheating the music royalty system" by the National Music Publishers' Association.
The Association even asked the Federal Trade Commission to investigate the audiobook feature, as the company would pay around $150 million less in music royalties over the next year because of it. Spotify, of course, denied the accusations.
Even if Spotify does roll its prices back, there are still many ways it can cut costs. For instance, the company laid off about 9,000 employees in late 2023 citing "the gap between our financial goal state and our current operational costs."
If you want to switch back to the old plan since it's already available, you can head to your account page and select "Manage your plan." under "Change plan" you can select the Basic tier which costs $11.
More Ways Spotify Cuts Costs
Spotify has also faced some backlash after announcing the changes it's making around the royalty payment system, which appeared like good news at first seeing as $1 billion would be reallocated to artists over five years.
The company said in a blog post that since the royalty pool and catalog on Spotify have surged, many factors have been its funds meant for compensating artists for their content. Some of them include artificial streaming, wherein users post noise for the sake of earning.
One of the policies in the new system is said to be disparaging indie artists, as it would demonetize tracks that only earn less than five cents per month. This can prevent emerging artists from establishing a bigger listening audience as they are pushed out just as they are starting.
Spotify will charge labels and distributors per track when it detects flagrant artificial streaming as a new deterrent. The company will be using its "improved artificial streaming detection technology" to detect such instances.
