PlayStation Plus Subscribers Can Get 10% Off Their Spotify Subscriptions

Brokerages Set Spotify (SPOT) Price Target at $184.17

While we could sit here and argue the merits of streaming services and how it is cutting into the profits of musicians and changing the entire industry for the worse, we'll just skip right past that today and focus on news coming from streaming service Spotify and their paid offering, Spotify Premium.

Reports claim that Spotify is gearing up for an improved version of its service for free users. Now in light of this, Spotify appears to be looking to make some changes to its free-tier. But they are able to shuffle songs.

Users on the free service get only a few song changes, a 30 minute ad free playtime, they can not play every song and are not able to download music onto their devices. That means Spotify Premium users will have access to on-demand music and personalized playlists and mixes, while also gaining access to Hulu's on-demand video library of over 75,000 TV shows and movies, like "The Handmaid's Tale", "Looming Towers", and Marvel's "Runaways".

Spotify is in a critical position now that it's gearing up to become a publicly traded company. Also, those new customers, on top of old ones, need to be convinced to stay, and a much-better free tier is one such way to make them continue as patrons. While the premium customer base accounts for less than half of its total user base, they generated about 4.09 billion euros in revenue in 2017. Spotify's terms for these bundles specifically spell out that users who bill their monthly subscription through Apple's App Store or Google Play are not eligible to receive the discounted Hulu add-on.

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This model has worked well.

The companies said they plan to make the offer available to consumers who don't now subscribe to Spotify later this summer. Stockholm-based Spotify had 157 million user at the end of 2017, including 71 million paid subscribers. Technology giants Amazon.com Inc., Apple Inc. and Alphabet Inc. are all vying for a larger share of the music subscription market.

Apple's music streaming service is set to overtake Spotify in the United States this year.

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