New York Times Offers Free Spotify Service to Boost Subscribers – Bloomberg (Feb 8, 2017)
Spotify has long partnered with wireless carriers to boost subscription numbers with subsidized memberships, and it now looks like it’s going to do the same with the New York Times. The subscriptions are generally going to net Spotify quite a bit less than its standard US $10 per month rate (though it’s impossible to know how much), and that in turn devalues the paid subscriber numbers Spotify regularly releases. It’s the leader by paid subscriptions by some margin over Apple Music, but it’s quite possible that Apple Music could end up netting (and paying out) as much revenue as Spotify in the next year or two even with far fewer “paid” subscriptions because of this kind of discounting. And of course a discounted subscription likely means a lower margin for Spotify too, further complicating its efforts to try to turn a profit ahead of a possible IPO. Lastly, music and news are an interesting bundle, given that those are the two content categories for which Apple has launched its own app in the last couple of years.
via Bloomberg
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