After disclosing a loss of 231,000 postpaid subscribers and 364,000 prepaid subscribers during an earnings report today, Sprint announced a new partnership with online music streaming service Spotify to offer some special deals and discounts as part of a “Sprint Sound Sessions” package. The package includes some special pricing with Spotify, access to the Sprint Music Plus music store and player, access to the curated Music Live service offering news and downloads involving the world of music, and the NextRadio app for listening to local FM broadcasts. The partnership with Sprint is the first deal Spotify has entered into with a U.S. carrier.
The structure of the Spotify deal focuses on sweetening the Framily Plan packages Sprint has been offering. Customers on a Framily Plan will be provided with free access to Spotify premium for six months, including mobile access and the ability to download songs for offline enjoyment. After the six month trial, Framily Plan subscribers can get Spotify at a discount with monthly fees running $7.99 per month for Framily Plans with zero to five subscribers or only $4.99 per month for those with six to ten members. The normal price for Spotify premium is $9.99 per month. The special pricing will expire after 18 months.
For Sprint customers not on a Framily Plan, Spotify is offering a three month free trial, but no discount after that.
For Sprint, this appears to be part of a strategy to add some value to their plans to keep customers from abandoning Sprint for other carriers. According to Sprint, service disruptions resulting from their network upgrade work is causing many subscribers to switch carriers. While Sprint is losing subscribers, Verizon, AT&T and T-Mobile have all added new customers or have maintained their current base.
Below is an excerpt from Sprint’s press release regarding some special deals they are implementing:
2. Sprint also introduced a national entertainment platform – Sprint Sound Sessions – at the core of which is a premium package of music and privileges for Sprint customers. Sprint Sound Sessions includes:
- Spotify – Sprint is giving customers access to Spotify’s catalogue of more than 20 million songs. Spotify allows users to play music on demand, create playlists, discover new music, share tracks with their friends, listen to songs offline, and listen to music without ads across multiple devices.
- Sprint Music Plus – Sprint’s official music store and player for music tracks, albums, ringtones and ringback tones.
- Music Live – an immersive and interactive experience that is continuously updated with the latest music news, current hits, new music and featured services. The “always-on” live experience enables customers to discover and engage with services that include Spotify, Music News Feed, Top Songs, NextRadio (FM Radio) – Music Downloads, Ringback Tones, Ringtones and ID-a-Song services.
- NextRadio – an application for listening to local FM broadcasts on customers’ smartphones.
Sprint Sound Sessions will also include premium access to streaming music services, premium and discounted access to live music events, exclusive performance recordings, and advanced access to new artist releases. Sprint Sound Sessions will constantly evolve, combining benefits and exclusive opportunities that make music more accessible, memorable, and ultimately more satisfying for Sprint customers.
3. As an added music bonus, Sprint will offer six months free of Spotify Premium for all new and existing postpaid Sprint customers (excluding Corporate Liable) who are on a Sprint Framily plan and have an Android smartphone, iPhone, Windows 8/8.1 smartphone, including the groundbreaking HTC One (M8) Harman Kardon edition. Customers not on a Framily plan can enjoy Spotify free for three months.
For Framily members there’s one more bonus: after six months of free Spotify Premium, members pay a monthly promotional price of $7.99 (1-5 users) or $4.99 (6-10 users) for 18 months, depending on the number of Spotify Premium users in their Framily. After 24 months customers pay the standard Spotify price (currently $9.99 per month).
Framily (1-5 people) 6 months free and then $7.99/mo. After 18 months, customers will pay full $9.99/mo. Framily (6-10 people) 6 months free and then $4.99/mo. After 18 months, customers will pay full $9.99/mo. Non-Framily customers 3 months free and then $9.99/mo. (must opt-out) Effective May 2, 2014, Sprint will partner with Spotify to launch 3- and 6-month free trials for all postpaid customers. It will launch in all channels on all compatible Sprint postpaid devices.
Come comment on this article: Sprint partners with Spotify in effort to shore up Framily Plans, stem subscriber losses
Sprint partners with Spotify in effort to shore up Framily Plans, stem subscriber losses
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