Spotify launches discounted Family plans, starting at $17.99/month

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In a move to add more paying subscribers and play catchup with some of its rivals, Spotify has announced on Monday that it would introduce family plans to bring cheaper subscriptions to its existing subscriber’s family members (or roommates).

Under Spotify Family, up to five family members will be able to share one billing account but maintain separate accounts. Each family member will get all the benefits of Spotify Premium – including listening to music without advertising, and on any device offline or online.

A single family member will have to pay the full Premium price of $12, with each additional family user getting a 50 percent discount. For example, a family of four will pay $30 per month to get every member a Spotify Premium subscription, instead of four separate charges of $12 (totalling up to $48 per month).

“This is one of the most asked for features from our audience,” Ken Parks, Spotify’s Chief Content Officer, said in a statement.

The move is likely to help them push many more of its users into paying subscribers – especially given the discounted rate for additional Premium subscriptions. It currently has ten million users across 56 countries since May, with a large portion being free customers who listen to the service with advertising.

Like Spotify, its rivals have introduced similar family plan offerings in order to increase the number of paying subscribers. For example, Rdio introduced its Family plan offering in 2011. Initially, it was capped at three members, before they expanded it to five last year. Under Rdio’s Family Plan, you will get a 20% discount off the second account added, and a 50% discount on the third, fourth and fifth account added.

Spotify has said that this will be rolled out globally over the upcoming weeks. The full pricing tier is below:

Plan Price (AUD) Price (NZD)
Spotify Premium $11.99 $12.99
Spotify Family 2 (one additional user) $17.99 $19.49
Spotify Family 3 (two additional users) $23.99 $25.99
Spotify Family 4 (three additional users) $29.99 $32.49
Spotify Family 5 (four additional users) $35.99 $38.99