Implications of Refusing Spotify's Rate Hike and Strategies for Maintaining Initial Pricing
In a recent announcement, streaming giant Spotify has unveiled a new Basic Plan and price adjustments for its premium subscriptions. The changes, which require user consent by October 14, 2025, aim to accommodate the integration of audiobooks into the platform's repertoire.
To access the Basic Plan, users can log into their Spotify account on a browser, click on their profile picture, then on "Account", and then under "Available Plans" or "Manage Subscription". However, it's important to note that the Basic Plan can only be booked once and if cancelled, users cannot rebook it.
The Basic Plan is designed exclusively for existing Premium subscribers. Newly registered users will be charged the new, higher prices. The free version of Spotify will remain unchanged.
The new Basic Plan offers users access to audio plays but does not include audiobooks. If users ever want to listen to an audiobook on Spotify, they can purchase individual books separately. Premium users will soon have access to 12 hours of audiobook material per month.
It's worth mentioning that the switch to the Basic Plan will take effect at the next billing cycle. The Basic Plan is available for every subscription, from individual to family. Users who switch to the Basic Plan will keep their Premium benefits and the old price, but without audiobooks.
All four current premium Spotify subscriptions (individual, family, student) will be affected by the price increases. The changes will impact the listening experience for users who have not agreed to the price increase, as their Premium subscription will automatically end after October 14, 2025, and their account will be switched to the free version with advertisements.
For those who agree to the price increase, they will retain all known premium features and have access to the audiobooks that Spotify offers. However, this access will be limited to 12 hours per month, and users will be paying more for their subscription in the future.
Spotify, the world's most popular music streaming service, boasts 696 million monthly active users and 276 million premium customers as of Q2 2025. The company's latest move is a strategic step towards expanding its content offerings and securing its position in the competitive streaming market.
