Simply weeks after elevating the costs for its premium subscription choices, Spotify is making one other change and launching a cheaper tier.
The streaming music platform on Friday launched what it’s calling a “Fundamental” premium plan, which can embrace the entire streaming music advantages, with none audiobooks. The brand new Fundamental plan will price $10.99 per thirty days, the identical because the Spotify normal plan (which it calls “Premium Particular person”) used to price.
Earlier this month Spotify raised costs for all of its subscription plans, rising Premium Particular person plans to $11.99 per thirty days, the duo plan rising by $2 per thirty days to $16.99, and the household plan rising by $3 per thirty days to $19.99. The coed plan, which is obtainable at a reduction to verified college students, remained set at $5.99.
One of many causes the corporate gave for the hikes was the addition of recent choices, together with audiobooks, that are a company prerogative.
However the brand new music-only tier means that Spotify is prepared to mess around with its choices to maximise subscriber income. For instance, it is usually providing customers of its ad-supported tier the choice so as to add audiobooks for $9.99 per thirty days.
That could be a product that may attraction to avid audiobook listeners who don’t notably care concerning the music providing, in the identical approach that the brand new Fundamental plan appeals to music followers who don’t care about audiobooks.
Spotify, like different streaming providers, is attempting to develop into a worthwhile, sustainable enterprise, and new choices in each content material, subscriptions and promoting are seen as key to hitting that aim.