Is there any question why per-user royalty payments are steadily declining at Spotify?
If you’re based in the US and haven’t previously signed up for its paid service, Spotify is now offering 3 months of its premium service for just 99 cents.
The usual charge is $9.99 a month, so customers are being treated to a drastic 90% cut. Similar to its previous offer, the regular rate returns after the three-month window. Upgrading to Spotify’s premium tier eliminates advertising, introduces higher bit rates, and offers the capability to download music for offline (‘cached’) listening.
The late-year stunt could be an attempt to jack paid-subscriber totals before 2016 strikes, among other aims. For starters, the similarities to Apple Music’s three-month free trial is obvious. Apple’s trial proved solidly successful, with Apple Music now boasting more than 6.5 million paying subscribers. That’s bigger than the respective totals at Rhapsody, Deezer, and Tidal, though it still lags behind Spotify’s 20 million subscriber count.
On the free side, Spotify has most recently reported that 55 million people use the ad-supported version. That number is growing quickly, and Spotify estimates that its monthly user tally will push past 100 million by the end of 2015.
However, Spotify has some stiff competition with Apple, including Apple Music in its new mobile operating system, iOS 9. The update was installed (or pre-installed) on an estimated 500 million iPhones and iPads within a week of its release.