Spotify is offering two new deals, starting today, to bring more people over to its premium subscription service. New users can get three free months if they sign up from today through June 30th, and the deal applies to any premium plans including family, student, and individual. Meanwhile, people who once were individual premium members, but canceled their plan before April 14th, can sign up again for $9.99 for three months, bringing the cost of a subscription to a little over $3.00 per month. People can access both deals from spotify.com/premium.
The offers seemingly suggest Spotify is trying to ensure it’ll keep making subscription revenue while the COVID-19 pandemic continues. Its overall revenue partially comes from advertising, which is an area that’s been particularly hard hit across industries because of the global economic downturn. The company said in its most recent earnings report that its ad-supported revenues fell short of its forecast, and it lowered its revenue guidance for the year as a result.
The fact that the company points to April 14th as the date by which people had to have canceled their premium subscription also might suggest it’s hoping to recoup lost money because of the pandemic. Spotify said in its earnings report that although the number of users canceling their accounts was down overall, one in six people who canceled in the US cited COVID-19 as a reason, adding that a majority plan to renew their accounts once their economic situation improves. People have been tightening their budgets as world unemployment rates soar. The company offering a cheaper subscription, along with more features for premium members, might make them more likely to sign back up.
