Spotify Premium subscription drops by 20%... already?
Are Spotify in trouble already? Or are businesses keen to subsidise their outrageous running costs because they're the coolest kids on the block right now? Registered users of the online music service have received an email this afternoon, offering the Spotify Premium service (which offers no interruptions from commercials, higher sound quality, mobile app use, offline downloads etc) for a 20% discount over the next six months:
Swiftcover clearly want the brand association, but subsidising the Premium service - doesn't that suggest the price is already a barrier in take-up for the service? There are a dozen other ways Spotify could have promoted their client without sending out the wrong signals. Spotify put on gigs and offer exclusive recordings for premium users - Swiftcover could have sponsored a series of these. There could have been a giveaway of Premium subscriptions. Neither of these options would potentially harm the current base of subscribers.
Clicking on the link to the offer produces a promo code at the online checkout - there are no terms and conditions mentioned in the email (that might suggest this is applicable to new customers only), so current Premium subscribers would be well within their rights to demand a reduction on their current rate.