Spotify, Hulu Expand Bundle Beyond College Students
For an additional $3 per month, Spotify subscribers can add Hulu's limited commercial plan to their bill.
Seven months after Spotify and Hulu teamed up to sell a discounted bundle of their services to college students, the two companies are bringing the offer to a wider audience.
Existing subscribers to Spotify's premium music streaming service, which offers a library of songs without advertisements, can now add a subscription to Hulu's on-demand streaming offering, which features some advertising, to their monthly bill.
For the first three months, existing Spotify Premium subscribers will get the Hulu bundle for $1 per month. After that, they will be charged $13 for the bundle. Spotify Premium currently costs $10 per month, while Hulu with limited commercials costs $8 per month. That means the bundled service will be $5 cheaper than buying Spotify and Hulu subscriptions separately.
Spotify and Hulu are expected to extend the offer to people who aren't already Spotify Premium subscribers this summer.
"Based on the outstanding performance of the Spotify and Hulu student package, it's clear that consumers love to combine their music and television experiences together," said Tim Connolly, senior vp and head of distribution and partnerships at Hulu. "Hulu and Spotify are brands that are defining how fans connect with entertainment in the future, and we are excited to expand our partnership to bring this combined package to all existing and new Spotify Premium subscribers."
The newly public Spotify has a library of more than 35 million tracks. With 71 million paying subscribers, Spotify is larger than competitors Apple Music and Tidal. Hulu, meanwhile, has become a destination for television with 75,000 current and classic series, including Roseanne, This Is Us and ER, as well as originals such as The Handmaid's Tale and The Looming Tower.
In September last year, the companies announced that they would offer a bundle of their services to college students in the U.S. for $5 per month. At the time, they hinted that a broader bundle would soon follow. Bundles like those that have existed in the linear television industry for decades are seen as a way to encourage new sign-ups in an age of dozens of subscription streaming options across entertainment and music.
"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.," said Spotify chief premium business officer Alex Norstrom. "Hulu's TV content is highly acclaimed, and with this exclusive Spotify offer we are bundling two top media platforms for an unbeatable price. This is just one example of how we can add value to our premium members day after day."