Spotify to launch new version of free music streaming service this month

Bloomberg: Spotify plans revamp to free service

Bloomberg: Spotify plans revamp to free service

Hulu and Spotify are now offering their services as a bundle, which combines Spotify Premium and Hulu's with-ads version for $12.99 per month. Spotify is Apple Music's biggest rival in the U.S., and the music streaming service looks to take on the recently launched Amazon Prime Music among others in the Indian market. Spotify's revenue model has been to attract customers for its free service, who would then support the platform by upgrading to a premium account.

That means the bundled service will be $5 cheaper than buying Spotify and Hulu subscriptions separately.

As you know, Spotify Premium gives users all of the great content Spotify has to offer, without any of those pesky ads interrupting your six hour session of Call Me Maybe. However, Hulu is still not available to users based in the UK.

Spotify Technology SA is developing a new version of its free music service, the first big product change since the streaming company went public last week, according to people familiar with the matter.

In September a year ago, the companies announced that they would offer a bundle of their services to college students in the USA for $5 per month. That service, rumors suggest, will be sold as part of an Apple Music subscription or even ship with iOS.

Both companies also use these bundled plans to steer subscribers away from third-party billing agreements, which can eat up as much as 30% of a service's monthly fee. Spotify Premium is ordinarily $9.99 a month, while the basic Hulu plan is $7.99 a month. The duo previously teamed up on a bundled plan just for students, but the new offering will eventually be available to a wider swath of consumers.

"Our student launch with Hulu was incredibly well received and we are excited to extend our reach by bringing Hulu to more of our Premium members in the U.S.", Spotify chief premium business officer Alex Norstrom said in a statement. "This is just one example of how we can add value to our premium members day after day".

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