Spotify is offering multiple new discount offers in a bid to get more people onboard its paid subscription service. Firstly, the music streaming giant is extending its free trial period from one month to three months for new Premium subscribers.
New users subscribing to Spotify Premium will now get to enjoy the service for free for three months. The offer is applicable across all of its subscription plans, including individual, student, and family plans. This deal is already live and runs until June 30 globally.
People who have already taken up Spotify Premium free trial aren't eligible for the offer. However, for those who had a premium subscription previously but left the service before April 14, Spotify has a separate lucrative deal.
Such users can get three months of Spotify Premium at the cost of one month. They can sign up for an individual plan again at $9.99 for three months. This brings the cost to a little over $3.00 per month.
Now that's one way to entice users to renew their lapsed subscriptions. Users will save about $20 over the next three months, and get access to all of the features they lost when they decided to cancel their paid subscription.
Post the three months period, regular rates will apply. Spotify Premium costs $9.99 a month for the individual plan.
The $15 a month family plan lets you use up to six accounts, while the $5 a month student plan bundles in ad-supported Hulu and SHOWTIME.
Other Spotify Premium features include ad-free music, unlimited skips, and on-demand playback. The family plan also offers a specially curated Family Mix playlist for your family, Spotify Kids app, and a feature to block explicit music.
Spotify Premium offers three months free trial amid the global economic recession
Spotify's latest offers are seemingly aimed at bringing more people over to its premium subscription service. The COVID-19 pandemic has hurt most businesses around the world. This has further impacted businesses that depend on advertising revenues.
In its most recent earnings report, Spotify said that its ad-supported revenues fell short of its forecast, although it saw a healthy increase in both the number of monthly active users and premium subscribers. As a result, the streaming giant is now forecasting a lowered revenue guidance for this year.
One in six users who canceled their Premium subscription in the US recently cited COVID-19 as the reason.
They are likely to renew the subscription once their economic situation improves. So by offering them the same service at a lower cost, Spotify is more likely to get them back.