Spotify CEO Daniel Ek has announced plans to expand the platform's subscription options and bundles as part of a strategy to optimize its value-to-price ratio. This development comes amid industry controversy over Spotify's recent moves into audiobooks and pricing structure changes.

During Spotify's Q1 earnings call, Ek emphasized the company's focus on balancing value delivery with pricing. The platform plans to introduce more flexible subscription options, including:

• A dedicated audiobook-only tier
• A music-only tier
• Various payment plans (daily, weekly passes) in specific markets
• Enhanced bundle options

This expansion builds on Spotify's history of diversifying its subscription models, which evolved from individual plans to include family plans, Duo options, and market-specific payment structures.

However, the National Music Publishers Association (NMPA) has expressed strong opposition to these changes, particularly the audiobook-only option. NMPA President David Israelite criticized the move as potentially unlawful, arguing it would reduce songwriter payments by reclassifying the music service as an audiobook bundle.

The controversy centers around the 2022 settlement that established mechanical royalty rates of 15.35% for 2023-2027. Spotify's new bundling approach has already resulted in $100 million in royalty savings since March.

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