The cost of college can be expensive, but the cost of streaming unlimited music, movies and TV is now more affordable for U.S college students than you would think. Just recently Spotify joined forces with the TV streaming service, Hulu, in hopes to gain more subscribers on both platforms, and create a new partnership.
On September 7th, these two different entertainment platforms officially opened up their brand-new deal, $4.99 a month for access to both Spotify and Hulu, for U.S college students only. This bundle is the same price for regular Spotify, but now you get Hulu added on for free through this new offer. Both companies continue to have their own separate apps, so there will be no technology integration, where you would see Hulu suggestions within Spotify’s app. So, in a sense, yes they are bundled together, but each still operates completely separated from the other.
In the past, Spotify has tried to push their original videos into the spotlight and grab their listener’s attention. But if you watch one of their original short episodes, you would understand why nobody would sign up to Spotify strictly to watch any of these episodes. It has long since abandoned those plans for combining music and TV. With this new plan with Hulu, Spotify may not need to start from scratch on their TV channel idea. We could be seeing something big in the near future with these two platforms partnership that has already been created.
The landscape in the music streaming business can be very competitive. When you look at the number of subscribers for Spotify (60 million) and Apple Music (27 million), however, you can see that this entertainment bundle is only going to increase their numbers and widen the gap between their competition. Apple hasn’t announced anything about what they might potential do in reaction towards this new bundle.
Hulu’s plan in all of this is to hopefully gain a larger number of subscribers and make a habit of students continuing to use Hulu after they graduate college. By getting access to Hulu for free, students will get introduced to streaming TV and will hopefully enjoy the experience and want to keep Hulu. On the other hand, Spotify is trying to do a similar strategy. Students get half price to Spotify premium, but once they graduate it goes back to normal price. Spotify is hoping to draw in those students at a cheap price and access to Hulu and keep them once they graduate. Spotify is paying for all the advertising and digital promotion, while Hulu doesn’t have to pay anything. But Hulu is not getting any revenue by letting Spotify subscribers gain access to their streaming network.
With such a low cost, college students can get the perfect entertainment bundle with music and TV streaming ability. We will see if these two companies continue to share their networks and advance their market to more than just U.S college students. This entertainment bundle is nothing like we have seen before, and we will see if it works out for both Spotify and Hulu.