With 108 million subscribers, Spotify has seen Apple Music approach after reaching 60 million paid users. To stop the competitor, the service extended the trial period of Spotify Premium to three months.
Until then, new subscribers were entitled to just one free month. According to Spotify, the new offer is valid from this Thursday (22) on the individual and student plan. After the three months, they start to cost R $ 16.90 and R $ 8.50 per month, respectively.
In a statement, the service indicates that the promotion will also be carried out in the Family plans in the coming months. Spotify’s premium business director Alex Nortström explained to Variety that the goal is to give new users time to take advantage of what the subscription has to offer.
“We know that it takes time to try all the features available in Premium, so we are giving people the time they need to fall in love with the Premium listening and access experience on demand,” he said.
Spotify’s strategy is in line with that adopted by Apple Music, which also offers three months free to its new subscribers. Today, the two platforms charge the same price for individual and university plans.
The difference is in the family plan, in which Spotify charges R $ 26.90 per month and Apple Music, R $ 24.90 per month. In both cases, the main user can invite five other people, who will receive individual accounts to listen to their music.
Despite leading the race for subscribers, Spotify still doesn’t make a profit. In the second quarter of 2019, the company reported a net loss of € 76 million. If there is a positive point, it is that the result was better compared to the same period in 2018, when the gap was € 394 million.
The company’s revenue from April to June stood at € 1.67 billion and was largely composed of paid users, the focus of the new promotion. Spotify Premium accounts for 90.1% of revenue, while free version ads account for 9.9%.