Since adding audiobooks and podcasts, Spotify users have changed the way they use the platform. There has become more variety, so not everyone is there for the music any more.
Spotify just announced some changes to their subscription options. They’re going to offer different tiers, including ones just for audiobooks or music. Since Spotify’s expansion, there have been so many more reasons to use the platform.
Daniel Ek, the CEO of Spotify, explained during a recent meeting that they want to give people more choices for subscriptions. They’re doing this because they want more people to use Spotify, so they’re trying to make it more appealing to different types of listeners.
One new option will be a basic plan that’s just for music and podcasts. Another new plan will focus only on audiobooks. This new audiobook plan is already available in the US for $9.99 per month, but it doesn’t include the premium features like ad-free music.
But these changes have caused some debate in the music industry. Spotify used to only offer music plans, but now they’re bundling audiobooks with some subscriptions. This could affect how much money songwriters make from streaming.
Under the current rules in the US, streaming services pay songwriters less for bundled services than for just music. This means songwriters might get less money when people choose plans that include both music and audiobooks. It seems unfair.
David Israelite, from the National Music Publishers’ Association, says Spotify is hurting songwriters with these changes. Perhaps with the new changes of music only subscriptions, music artists will start to earn money more fairly again, as will authors.
There’s also talk that Spotify might raise the price of their main subscription plan, which includes music and some audiobooks. This could happen later this year, and it might make all current subscribers switch to the more expensive plan automatically.
During a recent meeting, Spotify didn’t directly talk about how these changes might affect songwriters’ earnings. But they did say they’re trying to balance different types of content and costs with these new plans. Unfortunately, they will never please everyone.
So, while these changes might give listeners more options, they’re also causing some concerns in the music industry about how songwriters will be paid. After all, where do they fall into these subscriptions, and where exactly do their earnings come from?
