Spotify Offers Two Months Free in Europe Ahead of Apple Music Launch
Apple's announcement that they'll offer their new streaming service, Apple Music, for free for the first three months is sweet for consumers, but it hasn't gone down as easy with record labels, who won't get any money from Apple during those three months.
Spotify, seeing an opportunity, announced today (June 19) that it will give away its premium service for free for two months to all new European customers, according to Music Business Worldwide. The company is also continuing a promotion in the U.S. where subscribers pay 99 cents for the first three months of premium service.
It's a strategic opportunity for Spotify to get in front of as many consumers as possible before Apple Music turns on the lights on June 30. In an ironic turn of events that could have only been made possible by Apple's entry to the market, it's also an opportunity for the often-vilified Spotify to look like heroes to the music industry: unlike Apple, Spotify has minimum revenue guarantees in place for labels. In other words, Spotify will be paying labels just like normal, even as it gives its services away in some of its markets.
The promotion ends July 5 -- a week to the day after Apple Music launches.