Rogers is working very hard to draw in new customers with the pretense of receiving ‘extras’ in their Share Everything+ Plan. The new premium tier was just added September 1 and by adding the ‘+’ we are to assume that we are receiving something extra for their expensive month plans. These new plans have ‘premium add-ons’ such as Spotify – a value of up to $29.97 a month for up to three lines on your plan for 24 months of Spotify Premium.
Raj Doshi, Rogers’ Executive Vice President of Wireless said earlier in the month, “the time is right for such a change. People are using their phones for more than just sending emails, texting or making a call – they’ve become portable entertainment devices. More than half of digital content is now consumed on mobile devices, which is why we are introducing our new Share Everything+ plans. We designed these fully loaded, customizable plans to meet the needs of every family. Families can choose one content experience they want to enjoy – unlimited music with 3 Spotify Premium accounts, TV and movies with Shomi or the latest news and magazines with Next Issue – and share across devices and family members on the plan.”
Rogers even brought Spotify’s CEO Daniel Ek to Canada to promote their partnership. Ek said that Canada is one of Spotify’s “fastest-growing markets,” while Rogers’ CEO Laurence pointed out that 95-percent of streaming music is almost done entirely on smartphones. A side benefit to Rogers is that subscribers are choosing higher data packages to cover their extra streaming and Laurence said, “We see this as a longer-term boost to ARPU (average revenue per user). Once Laurence made his mind up to pursue Spotify, it took just two weeks to iron out a deal. He said that “Hardware has started to become a little bit stale,” and believes that the added premiums is a way to justify the higher monthly plan rates…it is hard to believe that he would even say that out loud. The company recently did away with its popular 6GB plan and replaced it with a more expensive 9GB plan…which is where the customers gravitated…giving Rogers even more data sales per month.
As our smartphones become our go-to device for phone calls, navigation, videos and music, streaming music services, like Spotify are adding features, such as news broadcasts, podcasts, and videos as customer’s voracious appetite for streaming grows. This growing business on Spotify’s premium tier allows Spotify to pay more out to the artists, which they desperately need as music business dollars have continued to decline over the past five years.