Spotify and Hulu partnered up to release a deal for both services for only $12.99 a month for U.S Spotify subscribers. This has made Spotify’s stock debut on the market to start trading shares at $165.90, representing an increase of up to 25% on NYSE as the reference price. This puts the streaming service’s valuation around $29.5 billion.
As an introductory promotion, the bundle’s first month will be costing $10.99 and the following 2 months will be $9.99. This deal is basically a $5 monthly discount for what someone would pay for both services, as it combines Spotify’s $9.99 premium subscription with Hulu’s tier that costs $7.99 with commercials. However, this used to be a student only deal that will eventually be open to everybody.
Spotify and Hulu Team Up for Joint $12.99 Subscription Plan https://t.co/tKsuoLQgvC
— Variety (@Variety) April 11, 2018
Spotify and Hulu bundle: how it works and how to get it
The service will be firstly made available in the U.S to current Spotify Premium members, however, this summer could prove to be a major milestone for Spotify if the increase planned goes as it is forecasted. As reported by Bloomberg, Spotify’s approach of easier things for mobile users while providing a more accessible premium service could definitely do it.
The package originally announced for college students meant to boost Hulu’s and Spotify’s popularity. However, both companies decided to go public this Wednesday as they look forward to increasing scales. For Spotify, it is important to reaffirm their position as the leading streaming service, as it keeps struggling to pay off music royalty costs.
— hulu (@hulu) March 28, 2018
Spotify’s challenge going forward
The need to add more paying subscribers is the best way to bolster its business, which could be unprofitable due to royalty payments that must be met. Hulu, however, has been overshadowed by Netflix for quite some time now, despite being one of the biggest video streaming services in America, it barely reaches a third of Netflix’s subscribers in the U.S.
Spotify will host a public event on April 24 in order to broaden its expansion plan, as it has been reported that the company will present consumers with enhanced streaming services for vehicles and its very own speaker product. The company has also rolled out its IPO in order to show how its streaming losses have helped the music industry, which is certainly a milestone for the company.
The service has been making a huge amount of bold moves ever since it went public, which does signify the progress made by the company, but Spotify still has to ramp up membership numbers if it wants to stay relevant.