Still on the fence about music subscription services? Spotify would like to change your mind with some deep discounts: Three months of Spotify’s ad-free premium tier will cost new subscribers just $0.99, it announced Friday.
Spotify’s regular premium tier fee is $9.99 per month, but the service usually gives new users a one-month free trial. Under the new plan, this means that by signing up now they can save $19 over the course of their first three months. For Spotify, it means that users are starting to pay from the very first day, which could mean that they are less likely to cancel later on.
But there is also another side to this: Users who sign up for a free trial can’t be counted as paying users until the second month of their premium membership, whereas getting users to pay $1 for 90 days turns them into paying subscribers from day one. That looks better on paper, especially if Spotify was trying to raise more money, or if the company was trying to get itself in shape for an IPO.