How Will Spotify's Price Hikes Impact Authors?

An overview of the recent subscription plan changes, what it means for authors, and a list of questions to send to your publisher

In case you missed it last week, Spotify Premium subscriptions, which include the free 15 hours of audiobook listening, will now be $1-$2 more per month. Second, they’re also going to offer a new ‘basic’ subscription tier, which will allow users to access music and podcasts but no audiobooks for $10.99/month. The reason for these changes is to cover their losses after investing heavily in introducing its audiobook offering. Bloomberg got the scoop on this from a “group of anonymous sources familiar with confidential business plans.” 

However, that group of anonymous sources familiar with confidential business plans failed to mention how the additional revenue from boosting subscription prices will be routed to publishers and authors – if at all.  

Here are our main issues and initial take on these changes: 

1. This could be a lose-lose both for authors and consumers. Whenever Spotify has increased prices in the past, it has done so to cover company losses - yet creator royalties have stayed the same. This needs to change and Spotify needs to be more transparent into how it will address this. 

2. Spotify has entered this space with the promise of expanding the audiobook listener market and boosting the category. It looks like many consumers may opt for the basic tier now without audiobooks? That remains to be seen. 

3. I’m sure everyone agrees that the introduction of more subscription tiers and frequent price hikes not only generates confusion for consumers but further muddies the waters on how authors will benefit from and be appropriately compensated by Spotify’s offering.

Importantly, these changes haven’t happened yet, so we’ve put together a list of specific questions you can bring to your publishers to help provide clarity around these changes. Drop us a comment if you have any questions that you think should be added here!

Questions to Ask Your Publisher: 

1. Are my audiobooks included in the Spotify premium streaming deal?

2. Given the upcoming price increase to Spotify premium subscriptions, how will that extra revenue be used to compensate authors? How will this be calculated, and how will this be reflected on royalty statements?

3. Will you receive any money from these price increases that is not shared with authors, for instance, a lump sum payment?

4. Are these changes in response to feedback from publishers on compensation projections/expectations? 

5. Now that Spotify offers multiple tiers of listening, including a cheaper ‘basic’ premium subscription that excludes audiobooks, how does this impact Spotify’s promise of growing the category?  

6. If I am not satisfied with the answers to the questions above, can I ask for my book or books to be removed from the catalog licensed to Spotify or to be available for purchase but not for streaming as part of Premium's free 15-hour offer?

What Else We’re Reading This Week:

• The Bookseller: Spotify expands audiobooks offer to subscribers in Canada, Ireland and New Zealand

• Ars Technica: Spotify's second price hike in 9 months will target audiobook listeners

• Vulture: Best New Audiobooks of 2024 (So Far): March

• Axios: ​​Streaming costs by generation: Gen Z and millennials say they're overspending