Spotify Slashes Prices To $5 College Students.
The music streaming business has gotten really popular over the years and will continue to do so, with spotify most recent announcement.The subscription music company known as Spotify has recently decided to cut the prices for its premium services in half, from $10 to $5 a month, for any college students within the U.S.
This offer will cover up to just about any student with four-years, two-years or Junior college and will continue to be good for up to four years. Spotify will use a verification service from SheerID to identify whether the person who applies for the discount is actually enrolled.
This latest announcement seems to show that show that this will be an extremely aggressive move from Spotify on continue its growth since 2011, with help from Facebook. Ever since then, it has managed to ad over one million paying Subscribers in the US, but the company had admitted to wanting to increase those subscriptions even more. By aiming for college students, there a high chance of there growth to succeed with a cheaper price.
This discount will not come cheap for Spotify though, since they still have to pay the music owners a minimum fee for the use of their songs. Although, during the previous fall Spotify managed to secure over $250 million, at a valuation of $4 billion, so it still has enough money to keep them afloat. An increase of subscribers will most likely help the company as its contemplates on its IPO.
This wouldn’t be the first time a music service had decided to pull this move, Rdio had decided to do something similar to that of spotify during the previous month, with them offering half-off subscription for $5 an month.