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Analyzing Spotify’s Expanded Samsung Deal

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Spotify and Samsung’s joint promotion

Spotify (SPOT) has expanded its strategic partnership with Samsung (SSNLF). Spotify’s music app will be installed on Samsung’s mobile devices globally. Last year, Spotify secured a deal that made it the default music app on a range of Samsung devices with support for Bixby—Samsung’s digital voice agent.

In addition to the expanded app and device integration partnership, Spotify and Samsung have also teamed up on a joint promotion in the United States. The companies are offering Americans who purchase Samsung’s new Galaxy S10 smartphone six months of free Spotify music as long as they’re newcomers to the music platform.

Streaming music providers 

The joint promotion that Spotify and Samsung are undertaking in the United States fits into a familiar strategy that streaming music providers are leveraging to extend their reach and make more money. In addition to Samsung, Spotify became one of the default apps on Facebook’s (FB) Portal device last year. Spotify is also running a promotion. Customers who sign up for a certain premium plan receive a free smart speaker from Google (GOOGL).

Last year, Apple and Verizon (VZ) partnered on a program. Customers who purchased unlimited wireless plans on Verizon’s network received free Apple Music for six months. The companies have expanded the partnership. Now, Apple Music is an add-on on certain Verizon unlimited plans. Before Pandora was acquired by Sirius XM (SIRI) for $3.5 billion, Pandora had a partnership with Snap (SNAP) and Facebook to extend its reach. Pandora lets people share its songs on Snapchat.

At the end of the fourth quarter, Spotify had 96 million paying subscribers on its platform.

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