Spotify runs $99 annual subscription promo to challenge Apple Music

Spotify on Friday launched a promotion offering 12 months of Premium streaming for $99 — a little over $20 less than the music service would normally cost going month-to-month.

The sale expires on Dec. 31, and is available only to people starting or extending an individual plan. It also can't be paid for through gift cards or prepaid cards, which limits its potential as a holiday present.

It may nevertheless prove a competitive weapon against services like Pandora and Apple Music. The latter has been offering $99 annual subscriptions since last year, though only by diving into subscription settings or buying a gift card.

Typically an Apple Music subscription costs $9.99 per month — the same as Spotify's monthly fee.

Spotify is also currently selling three months of Premium for $9.99, though not to anyone who canceled a subscription after Oct. 20. Premium users get ad-free listening, offline caching, and access to higher-quality streams.

Follow AppleInsider on Google News

17 Comments

airnerd

said about 6 years ago

Spotify is a nonstarter for me unless they get a standalone Watch app.

lkrupp

said about 6 years ago

Spotify is an excellent service, that I’ll grant you. But Spotify is a one trick pony that will not be able to withstand the onslaught of Apple, Google, Amazon, and other behemoths that can play the low margins game until Spotify is asphyxiated by lack of oxygen in their profits. Royalty payments will rise, the margins will get thinner and thinner. Eventually Spotify will succumb to a buyout and be absorbed by somebody. I hope they have a strategy for this coming reckoning.

linkman

said about 6 years ago

So this $99/year plan is one more way for Spotify to lose even more money? It seems like their business model is the old "we lose money on every customer but we make up for it in volume."

ihatescreennames

said about 6 years ago

linkman said:

So this $99/year plan is one more way for Spotify to lose even more money? It seems like their business model is the old "we lose money on every customer but we make up for it in volume."

Hey! It works for Amazon! Why not Spotify? /s

I’m curious how long Amazon can continue losing so much money as well. I know, they occasionally make a profit, but how long can they offer Prime with “free” 2-day shipping, plus music, plus movies, plus whatever else you get with Prime. If Apple truly operates iTMS at break even or slightly better then Amazon must be losing more and more money every time they add more to Prime. I don’t get it. A couple of years ago I saw a guy on YouTube talking about how the prior year (I think) Amazon had spent $6 billion on shipping costs but only charged customers $3 billion. Like Spotify, I just don’t see how this is sustainable.