Music streaming platform Spotify has seen a commendable rise in subscribers as reported in its last quarter results, but the company is still making losses.
In an attempt to address this challenge, the company is giving free access to its premium service, running until September 11, 2022. Users who subscribe to Spotify Premium will get three months of service absolutely free.
The Premium option gives users access to ad-free music listening, unlimited skips and the ability to download content for offline listening.
After the promotion period, the standard $9.99 will automatically be activated unless a user decides to cancel.
The company reported 188 million customers in its Premium tier, up from 182 million in the previous quarter and a 14% rise from the same period last year. The total number of monthly active users, which includes free tier listeners is reported as 433 million – a 19 per cent YoY increase.
Despite these significantly high numbers, the Swedish company still posted a loss that it hopes to turn around by converting more members in the free tier to premium subscribers.
The promotional package is not available to members who were previously paying for Premium. However, those who cancelled subscriptions before 15th July join back at a heavily discounted price of $9.99 for the first three months.
Last week, the company launched Spotify Ticket, a ticket-selling it hopes to use in cashing on the entertainment industry. The company seems to be experimenting with several business models, hoping to turn around its losses into profits in the near future.