Hulu and Spotify are offering their services at an even steeper discount
Hulu, which will soon be controlled by the Walt Disney Company (DIS), and Spotify (SPOT) are extending a collaboration agreement they started in 2017. The two streaming giants announced on March 12 that all US subscribers of Spotify Premium, which costs $9.99 per month, would get access to Hulu’s streaming video-on-demand plan with ads at no extra cost. Hulu will be getting a revenue share, with both companies soaking in the discounts.
The deal will be available for new customers as well. Last year, the two companies collaborated, with Spotify Premium subscribers offering Hulu’s streaming video-on-demand plan with ads for an extra $3.0 per month.
Hulu and Spotify are trying to differentiate their services
Hulu has been trying to offer such promotions and discounts to its lower-end subscriptions. Last month, Hulu cut its ad-supported plan from $7.99 per month to $5.99 per month. However, it also hiked its live TV bundle price by $5 to $45 per month. The video streaming service will be promoting some of its original content via official playlists on Spotify.
Like Hulu, Spotify is also offering discounts. Students can use Spotify’s Premium service for only $5 per month.
Both companies have been offering something unique to differentiate their services from those of their competitors. Hulu offers video-on-demand along with live TV streaming options to distinguish its offering from Netflix’s. Meanwhile, Spotify’s partnership with Hulu could help it gain more subscribers compared to Apple Music.