Spotify and Hulu join forces for $13 subscription bundle

Bloomberg: Spotify plans revamp to free service

On Tuesday, Spotify said that subscribers to its Premium music-streaming service will be able to bundle it with Hulu's limited-commercial TV plan for $12.99 a month.

Both companies also use these bundled plans to steer subscribers away from third-party billing agreements, which can eat up as much as 30% of a service's monthly fee. The Spotify-Hulu package will be immediately available to current Spotify Premium customers and to everyone else this summer. Stockholm-based Spotify had 157 million user at the end of 2017, including 71 million paid subscribers. If your service ended anytime in the previous year, then you'll have to immediately pay the full $12.99 instead of getting the discounted trial run. After the 3 months are up, you can either cancel or automatically upgrade to the Hulu Spotify bundle, charged at a rate of $12.99.

Separately, Spotify Premium would cost $10 a month and Hulu's ad-supported version costs $8 monthly, so $13 is a deal. That price gets you Spotify Premium and traditional, video-on-demand Hulu (with ads).

"In fact really this deal seems to be Hulu's way of luring Spotify's almost 71 million active subscribers onto its cord-cutting service".

Sources familiar with the matter told Bloomberg that the music-streaming giant is planning to change its free tier to be more like its paid subscription service. The service also has 70 million paying subscribers (as of January 2018). Hulu has been ramping up original programming with shows such as "The Handmaid's Tale" and "The Looming Tower" to compete with popular streaming competitors such as Netflix.

Wednesday package deal is created to help Spotify and Hulu ramp up its memberships at a time when increasing scale is important to both companies.

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