Spotify’s Audiobook Gambit Draws Lukewarm Response from Subscribers

Spotify’s decision to add audiobooks to its Premium subscription tier has ignited a dispute with US music publishers over royalty payments. In response, the streaming giant has introduced a new, lower-priced “Basic” plan that excludes audiobooks. However, early data suggests this tactic has had limited success in swaying subscribers.

According to internal figures obtained by Bloomberg, Spotify had around 55 million US subscribers in the third quarter of 2024. Out of this sizable user base, only approximately 607,000 have opted for the “Basic” plan, which lacks access to audiobooks. This represents a mere 1.1% of Spotify’s total US subscriber count.

The crux of the issue lies in the royalty payments associated with audiobook inclusion. Music publishers argue that by bundling audiobooks into the Premium tier, Spotify should be paying higher mechanical royalties for this content. Spotify’s introduction of the “Basic” plan was an attempt to sidestep these bundling concerns and appease the music industry.

However, the low conversion rate to the “Basic” plan recommends that the majority of Spotify’s US subscribers are content with the all-inclusive Premium package, even if it means potentially higher royalty payments for the company.

The National Music Publishers’ Association (NMPA) and the Mechanical Licensing Collective (MLC), which is currently suing Spotify over the bundle issue, are likely to closely examine these subscriber migration figures. The modest uptake of the “Basic” plan may reinforce the publishers’ legal case, as it indicates that Spotify’s strategy has had limited impact on user preferences.