Daily Insights

Set to Stream

By: Mackenzie Baker | Jul 13, 2020

Spotify has spent much of this year expanding its features, from launching exclusive podcast deals to releasing a “live lyrics” tool. The streaming service is now adding to its list with a new subscription feature. 

The Spotify Premium Duo plan allows two users who live together to share an account. The plan—which is similar to the already existing Premium Family plan—was designed with those who do not have enough people for a family plan, but still want to share a subscription service. As such, Premium Duo is cheaper than Premium Family at $12.99 per month and does not include access to the Spotify Kids app. The Premium Duo account does, however, include a “Duo Mix” playlist, similar to the Family Mix available on the other plan. The Duo Mix will create a curated playlist based on both account holder’s musical preferences, giving them a shared playlist to listen to on the app. Spotify is launching the new service in the U.S. as well as 55 other countries. 

Spotify’s newest subscription plan is the result of consumer requests for an “in-between” premium plan that appeals to common duos like roommates and couples who may not have enough people for a family plan, but still want the financial and convenient benefits of a shared subscription. The plan may be particularly alluring for couples, as a Spotify study found 73% of couples like to listen to music together. By updating its features, Spotify could increase repeat engagement rates with users, according to a Gartner report, as the plan allows for two people to log into an account multiple times a day. 

To promote the new plan, Spotify created a commercial starring its quirky puppet “spokespeople” discussing their favorite aspects of the Premium Duo plan. The video ad is running on Twitter and Facebook, where Spotify can amplify news of the new feature to its more than 25 million followers. 

The addition of a Premium Duo plan reflects a modernization of Spotify’s offerings and an active way of meeting consumer preferences. By creating a customized plan, Spotify could strengthen the loyalty of its users and potentially convert casual, free app users into premium and paying subscribers.