There’s an art and science to streaming service promotional offers, from the length of free trials to the ‘X months for $0.99’ deals that roll out regularly from various DSPs. Spotify announced its latest move yesterday: a pincer movement to turn free users into paying users but also to tempt back old subscribers who’d cancelled.
The new-user offer is pretty standard: three months of Spotify Premium for free, as long as they haven’t taken up this offer in the past.
The offer for lapsed subscribers is $9.99 for three months of Spotify Premium (or the equivalent in local currencies: essentially three months for the price of one) open to all former subscribers who cancelled on or before 14 April 2020.
Is this a measure to battle Covid-19-driven cancellations? In its recent financial results, Spotify said that the pandemic has a “minor impact” on subscriptions, later clarifying that this was more about failed payments than actual cancellations. The strategy behind the new offer is, we think, more about luring back subscribers who may have cancelled long before Covid-19.