Spotify is offering a variety of new discounts to attract more people to use its paid subscription service. First, the music streaming giant extended its free trial period from one month to three months to attract new premium subscribers.

New users who subscribe to Spotify Premium can now enjoy three months of service for free. The offer is applicable to all its subscription plans, including individual, student and family plans. This will continue until June 30 worldwide.

Those who have accepted the free trial of Spotify Premium are not eligible for this offer. However, for users who previously had a premium subscription but quit the service before April 14th, Spotify has received a considerable benefit.  The fact that the company points to April 14th as the date by which people had to have canceled their premium subscription also might suggest it’s hoping to recoup lost money because of the pandemic. Spotify said in its earnings report that although the number of users canceling their accounts was down overall, one in six people who canceled in the US cited COVID-19 as a reason, adding that a majority plan to renew their accounts once their economic situation improves. People have been tightening their budgets as world unemployment rates soar. The company offering a cheaper subscription, along with more features for premium members, might make them more likely to sign back up. Such users can get Spotify Premium for three months in just one month. They can subscribe to their personal plan again for $ 9.99 within three months. So the monthly cost is slightly higher than $ 3.00. Now, this is a way to induce users to renew expired subscriptions. Over the next three months, users will save about $ 20 and can use all the features they lost when they decided to cancel their paid subscription. After three months, the regular rate will be applied. Spotify Premium's personal package costs $ 9.99 per month. The family plan of $ 15 per month can use up to six accounts, while the student plan of $ 5 per month is bundled in supported Hulu and SHOWTIME.

Spotify's latest offer seems to be designed to attract more people to use its premium subscription service. The COVID-19 pandemic has hurt most companies worldwide. This further affects income-dependent businesses. Spotify said in its latest earnings report that although the number of monthly active users and premium subscribers is showing healthy growth, the supported revenue is lower than expected. Therefore, the streaming media giant now predicts that its revenue guidance will be reduced this year. One-sixth of U.S. users recently canceled Premium subscriptions because of COVID-19. Once the economic situation improves, they are likely to renew. Therefore, by offering them the same service at a lower price, Spotify is more likely to get them back.

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