Spotify, Hulu announce new bundled service

Spotify, Hulu announce new bundled service

Spotify Premium offers unlimited music streaming, curated playlists, podcasts and more, and is the most widely-used service of its kind. Combined, the two companies are bundling their services for $12.99 a month, just $3 more than paying for Spotify as a standalone. The bundle includes traditional, on-demand Hulu (with ads) and Spotify Premium and costs $12.99, which is $4.99 less than separate subscriptions. This new plan will allow people to enjoy ad-free music on Spotify premium and Hulu with limited commercials. Spotify's revenue model has been to attract customers for its free service, who would then support the platform by upgrading to a premium account.

Commencing today, Spotify's Premium users will be able to access a trial version of this exciting new pairing through a promotion that will give Hulu a mere 99 cents throughout a three-month duration. In its end of the year report, the Recording Industry Association of America reports that subscriptions for streaming services such as Spotify had exploded from 7.7 million in 2014 to 35.3 million in 2017.

Читайте также: Comcast teams up with Chicago Cubs in technology, marketing partnership

Bundling the services makes economic sense for Hulu and Spotify, as the deal is only available to those who get billed through the package, saving Hulu and Spotify money by cutting out third party billing agencies. Hulu, meanwhile, has become a destination for television with 75,000 current and classic series, including Roseanne, This Is Us and ER, as well as originals such as The Handmaid's Tale and The Looming Tower. About 60% of US households stream, and 51% of them get Netflix, 33% get Amazon Prime and 14% get Hulu, according to CNBC's All American Economic Survey.

This isn't the first time Hulu and Spotify have worked together on a joint plan.

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