The "2 apps, 1 bill" plan combines ad-free music on Spotify Premium with Hulu's basic, ad-supported on-demand streaming service with full access to Hulu's enormous library of current and classic movies and TV shows. The model has worked well so far for the company which witnessed 157 million users at the end of 2017, which included 71 million paid users. The offer grants an initial three-month Hulu subscription for the exclusive price of 99 cents before charging a monthly price of $12.99 for the bundle.
On its own, Hulu's Limited Commercials plan is $7.99, so this is a significant savings. After that the plan will adjust to the regular price of $12.99 a month.
Hulu and Spotify have partnered together to create a premium streaming bundle, one that lets you take the best of TV and Music wherever you go.
Simply set up your Spotify subscription through the Sony service, and you can knock ten percent off the monthly fee. Technology giants Amazon.com Inc., Apple Inc. and Alphabet Inc. are all vying for a larger share of the music subscription market.
Hulu's standard United States packages are $7.99-per-month for "Limited Commercials" and $11.99-per-month for a completely ad-free experience - although it does offer a month's free trial to new users. The hope is the low price will lure people in, then they'll become too addicted to cancel. While the premium customer base accounts for less than half of its total user base, they generated about 4.09 billion euros in revenue in 2017. But clearly these margins are much slimmer than the traditional packages offered by the streaming providers.
The new offer is available initially to existing Spotify Premium subscribers only.
"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. The duo previously teamed up on a bundled plan just for students, but the new offering will eventually be available to a wider swath of consumers.