When Apple Music made its debut, one of the biggest reasons to switch from rival streaming services was for its $15 family plan. But it wasn’t long before Spotify copied it — and it’s been paying off in a big way.
The bargain family plan helped Spotify attract another 8 million paying subscribers during the second quarter of 2018, taking its total number to 83 million worldwide.
Just like Apple Music, Spotify costs $9.99 for an individual Premium plan. But for an additional $5 a month, you can subscribe to a family plan that offers all the same features for up to six people. Obviously this is a sweet deal.
It’s no surprise, then, that the family plan is helping Spotify achieve impressive growth.
Spotify’s family plan is a hit
In the three months leading to June 30, 2018, Spotify picked up an additional 8 million paying subscribers to take its total number to 83 million. That’s an increase of 40 percent year-over-year.
“Family Plan continues to be a primary driver of gross adds,” the company states in its earnings report. What’s more, those who subscribe to the family plan tend to stick around longer than those who opt for a Premium subscription.
This growth helped Spotify rake in €1.27 billion (approx. $1.45 billion) last quarter — an increase of 12 percent over the first quarter of 2018. However, the company still isn’t making a profit after posting losses of €90 million.
Spotify still boasts more subscribers than Apple Music worldwide — around twice as many — and it remains much more popular in Europe and other markets. But as things stand, Apple Music does have more paying users in the United States.