- It will be offering three months of premium access for free to its new users signing up for Spotify Premium.
- Earlier, Spotify offered 30-days trial premium membership.
- In a country like India, where consumers are sensitive to price, Spotify may hope that longer free trial may gain more subscribers.
The emerging music streaming giant Spotify has just announced that it will be offering three months of premium access for free to its new users signing up for Spotify Premium. Initially, the company had a similar offer where it was offering one month of free access for new users of the premium service. But now this has been escalated with an additional two months. For the company, it’s a permanent change in their business model where they want more users to experience the music streaming service before finally deciding to invest.
The three-month Spotify trial is now available for individual and student plans, and will roll out across Family and Duo plans (wherever available) in the coming months. The important thing to note here is that the new extended Spotify Premium trial is only open to those who haven’t tried Premium in the past. Moreover, the new three-month offer won’t also be available on non-recurring products or carrier billing (except Australia, Germany, Japan, and Switzerland), Spotify said.
In a country like India, where consumers are sensitive to price, employing such a strategy could lead to more users converting from the free model of Spotify to the ad-free paid service.
Music and podcasts play an important role in people’s lives so we wanted to give users the first 3 months for free to fully enjoy everything that Spotify Premium has to offer,” said Alex Norström, Spotify’s Chief Premium Business Officer.
“We know it takes time to fully experience all of the features available with Premium, so we’re giving people the time that they need to fall in love with Premium’s seamless listening experience and on-demand access to more than 50 million tracks, billions of playlists and 450,000 podcast titles for free.”
By getting on par with Apple Music, Spotify‘s extended three-month trial is now more than what other international giants, YouTube Music and Amazon Prime Music, offer — both are one month only.
Back in July, Spotify had recorded impressive numbers for Q2 2019 earning €1,667 million, which was a 31 percent growth over W2 2018. The Premium revenue clocked €1,502 million of the total revenue, which was a growth of 31 percent year on year. The revenue from the Ad-Supported tier registered €165 million, which is an increase of 34 percent compared with the same period last year.
Previously, Spotify India said the company had garnered 2 million active users in a month. According to Amarjit Singh Batra, Spotify is now among the top three music consumption in India.
Spotify also localised its pricing model before launching the music streaming app in India. A Spotify premium membership is 80% cheaper in India than in the US.