You will be redirected back to your article in seconds

Spotify Teams Up With Capital One for Half-Off Music Subscriptions

Music streaming service Spotify has teamed up with Capital One for a new promotional offer that effectively cuts the cost of a music subscription in half: Consumers who pay for their Spotify Premium subscription with a qualifying Capital One Quicksilver card will get 50 percent off their monthly fees.

The same offer is also valid for Spotify’s student or family plans, which effectively means that students can get access to Spotify’s ad-free premium tier for as little as $2.50 per month. And Capital One customers who don’t have a current paid Spotify subscription can get a three-month free trial.

The offer is valid until April 30 next year, and works like a typical credit card cash-back deal: Consumers pay Spotify the full monthly fee, and Capital One is reimbursing them half of that amount after one or two billing cycles. Interestingly, the offer also covers any future Spotify price increases.

Asked whether the 50 percent savings would come out of royalties for rights-holders, reps from both Spotify and Capital One declined to share details on the financial aspects of the partnership. However, a source close to the situation told Variety that the funding does not come from royalties and is being covered by Capital One, which seems to be supported by the wording in the legal terms of the deal on Spotify’s website. Promotional offers have been a cause for conflict between artists and music services in the past. Notably, Apple Music got into a high-profile row with Taylor Swift and others when it initially planned to not reimburse artists for promotional streams during the service’s free trial period — a policy that the company eventually walked back on.

The partnership comes with an obvious upside for Spotify, which is racing to grab as much market share as possible ahead of a planned IPO later this year. The fact that existing subscribers are eligible as well should also help the service with user retention. Two months ago, Spotify announced that it surpassed 50 million paying subscribers.

But there’s also an upside for Capital One: By some estimates, credit card companies pay as much as $250 in marketing to acquire a single customer, which is why cards often come with tens of thousands of free airline miles. Compared to that, music subscriptions may actually be a cheaper incentive.

More Music

  • Jeremy Vuernick

    Capitol Music Group Promotes Jeremy Vuernick to Executive VP of A&R

    Jeremy Vuernick has been promoted to Executive Vice President of A&R for Capitol Music Group, it was announced today by CMG COO Michelle Jubelirer and president Ashley Newton. In his elevated position, Vuernick will draw upon his broad experience as an A&R executive to sign and develop artists for the company, as well as oversee recording projects for new and [...]

  • DJ Khaled Bad Boys

    DJ Khaled Joins 'Bad Boys' Sequel (EXCLUSIVE)

    DJ Khaled has rounded out the cast of Sony’s upcoming “Bad Boys” sequel “Bad Boys for Life,” joining returning stars Will Smith and Martin Lawrence. Khaled will also join series newcomers Vanessa Hudgens, Alexander Ludwig, Charles Melton, Jacob Scipio, and Paola Nuñez. Joe Pantoliano is on board to return as Captain Howard. Production is currently [...]

  • Rihanna Super Bowl

    Rihanna Sues Father For Exploiting Their Last Name

    Rihanna sued her father on Tuesday, alleging that he has traded on their last name to solicit millions in investments. Ronald Fenty, who lives in Barbados, is accused in the lawsuit of establishing Fenty Entertainment in an effort to exploit his superstar daughter’s fame. Rihanna — whose full name is Robyn Rihanna Fenty — says [...]

  • BTS 'Burn the Stage: The Movie'

    BTS 'Burn the Stage: The Movie' Documentary Set to Hit YouTube Premium Service

    “Burn the Stage: The Movie,” a documentary following K-pop group BTS on their 2017 concert tour, will be streaming on the YouTube Premium subscription service starting this Friday. The movie is based on the previous YouTube original series “BTS: Burn the Stage.” Since its release in theaters worldwide last November, “Burn the Stage: The Movie” has [...]

  • Songs for Screens Powered by Mac

    Labrinth Takes Cowboy Classic 'Don't Fence Me In' to the City for New MINI Campaign

    British singer-songwriter Labrinth has been charting global hits for nearly eight years as one of Simon Cowell’s only non-reality show Syco signees, including the Emeli Sande duet “Beneath Your Beautiful” and the Adele-approved “Jealous.” But he’s only recently become more familiar to U.S. audiences through his Nicki Minaj collab “Majesty” and involvement with L.S.D., the acronym [...]

  • Ariana Grande One Love Manchester

    Ariana Grande Shows Off a New Eevee Tattoo After Bingeing 'Pokemon Let's Go'

    Pop superstar Ariana Grande showed off a new tattoo of a classic Pokemon after playing “Pokemon: Let’s Go Eevee!” for 15 hours, the singer revealed in a tweet Sunday. Grande, who is perhaps best known recently for her single “thank u, next” as well as the whirlwind romances that inspired it, showed off a new arm [...]

More From Our Brands

Access exclusive content