Spotify’s offering first-time premium users three months free until June 30th
Published on: 2020-05-14 17:41:18 | Category: Tips & Tricks | By: admin
Spotify is introducing two new offers to get more customers into its premium streaming service, starting today. New users can get three months off if they sign up from today until June 30th and the deal applies to any premium plans including family, student and individual. Meanwhile, people who were once individual premium members but had their plan canceled before April 14 may register again for $9.99 for three months, taking the cost of a subscription to a little over $3.00 a month. From spotify.com/premium, people can access both offers.
The deals seem to indicate that Spotify is trying to ensure that as the COVID-19 pandemic persists, it can keep making subscription money. Its overall revenue comes in part from ads, a sector especially hard hit across industries as a result of the global economic downturn. In its most recent earnings report , the company said its ad-supported revenues fell short of its forecast, resulting in a lowering of its revenue guidance for the year.
Also, the fact that the company refers to April 14th as the date people had to cancel their premium subscription may mean that they are trying to recover lost money due to the pandemic. Spotify said in its earnings report that while the total number of users canceling their accounts was down, one in six people who canceled in the US cited COVID-19 as a reason for this, adding that a majority expect to renew their accounts once their economic situation improves. As world unemployment rates soar, people have been tightening their budgets. The company offering a cheaper subscription, along with more features for premium members, might make them more likely to sign back up.