Spotify to end access to ‘Basic’ music-only plan for subscribers who cancel

The change follows Spotify’s decision in late 2023 to integrate audiobooks into its Premium Individual, Family and Duo plans. These plans were subsequently reclassified as ‘bundled subscription offerings’ under the Phonorecords IV agreement governing mechanical royalties between publishers, songwriters and digital service providers. The reclassification allows lower royalty rates for services that combine music with non-music content, such as audiobooks.

The move was met with resistance from some subscribers and rights holders. In response, Spotify made available a non-bundled, music-only option known as ‘Basic’. The tier, which was discounted by $1 compared with Premium, was difficult to locate within Spotify’s subscription options, but its existence enabled the company to argue that a non-bundled alternative remained available.

Under the current royalty framework, standalone music subscriptions such as ‘Basic’ pay full mechanical royalty rates, often around 15.35 per cent of revenue. By contrast, bundled plans distribute revenue using a pro rata formula, resulting in lower payments to songwriters and publishers. Bundled Premium subscriptions are estimated to reduce mechanical royalties to approximately 24.5 per cent of total content costs.

From late 2023, Spotify made bundled Premium plans the default option for subscribers. Users who wished to retain music-only access were required to actively downgrade to the ‘Basic’ tier, which remained largely obscured within account settings. As a result, most subscribers continued paying the higher bundled price while Spotify benefited from reduced royalty obligations.

New language now appearing on Spotify’s support pages indicates that ‘Basic’ may have been intended as a temporary offering. Spotify states that “Basic is available for previously existing Premium subscribers” and adds that “if you cancel your Basic plan, it is not possible to resubscribe to it”.

Digital Music News contacted Spotify for comment on the updated terms but received no response. The publication confirmed that once a Basic subscription is cancelled, the option is removed permanently, leaving subscribers with only bundled Premium plans available in the future. This effectively requires users to pay for audiobook access regardless of whether they use it.

Industry observers suggest that the Basic tier functioned as a transitional option for users unwilling to accept bundled subscriptions, while also allowing Spotify to maintain the appearance of offering a non-bundled plan. With the new restrictions in place, that option appears to be moving towards full discontinuation.

According to Digital Music News Pro data, Spotify Premium plans now account for 99 per cent of total subscriptions, underlining how marginal the Basic tier has become and how little visibility it had among the wider subscriber base.