Hulu and Spotify unveiled a new subscription bundle for avid streaming fans Wednesday: The plan, “Spotify Premium, now with Hulu,” combines a full Spotify a la carte subscription with Hulu’s entry-level on-demand service for $12.99 per month.
Bought individually, both plans would have a combined price tag of close to $18. The new bundle is initially available only to existing Spotify Premium subscribers in the U.S., who also get a chance to try out Hulu for three months for just 99 cents.
The companies said they plan to make the offer available to consumers who don’t currently subscribe to Spotify later this summer.
This isn’t the first time Hulu and Spotify have worked together on a joint plan. Last September, the duo teamed up on a bundled plan for students, providing access to Spotify Premium and Hulu’s entry-level subscription for a combined price of just $4.99 per month — the same as Spotify’s previous student subscription. At the time, the partners said they would roll out additional bundles aimed at a mass market.
“Our student launch with Hulu was incredibly well received and we are excited to extend our reach by bringing Hulu to more of our Premium members in the U.S.,” Spotify chief premium business officer Alex Norstrom said in a statement. “With this exclusive Spotify offer, we are bundling two top media platforms for an unbeatable price.”
Hulu’s senior VP Tim Connolly echoed the sentiment, saying: “Based on the outstanding performance of the Spotify and Hulu student package, it’s clear that consumers love to combine their music and television experiences together.”
Bundling two subscriptions in one plan can make economic sense for both companies, even with a sizable discount. The partnership promises to let Hulu and Spotify grow their overall subscriber base.
Both companies also use these bundled plans to steer subscribers away from third-party billing agreements, which can eat up as much as 30% of a service’s monthly fee. Spotify’s terms for these bundles specifically spell out that users who bill their monthly subscription through Apple’s App Store or Google Play are not eligible to receive the discounted Hulu add-on.
What’s more, Hulu is betting that subscribers will eventually graduate to more expensive plans, including its $11.99 monthly commercial-free on-demand offering and its $39.99 monthly live TV service (which includes access to Hulu’s SVOD lineup).