Spotify and Hulu Hedge Against Apple

Spotify and Hulu are partnering up to offer a free Hulu subscription to any Spotify Premium subscriber. According to Spotify, here’s how it works:

If you’re already a Spotify Premium user, it only takes a few seconds to add Hulu’s ad-supported plan to your account - just visit the Your Services page.

If you’re new to Spotify Premium, sign up for the bundle now at Sptofiy.com; you’ll get your first thirty days of both Spotify Premium and Hulu on us, then pay $9.99 per month.

Subscribers who are currently paying $12.99 per month as part of last year’s bundle offer will be automatically reduced to the regular Spotify Premium $9.99 price.

This services bundle announcement comes just a day after Apple announced its own video streaming service event for March 25th. I’m anticipating that Apple will offer a discounted bundled-price for subscribers to both Apple Music and the new streaming service. This bundle might even include the option to add the upcoming Apple News service. What I’m not anticipating, however, is that Apple will include its video streaming service for free to Apple Music subscribers - like Spotify is now doing with Hulu.

Apple is gearing up for a full-scale invasion into the services industry this year - possibly this month - and Spotify and Hulu are preparing their defense. If those companies, like me, are anticipating Apple to offer a discounted, non-free bundle for their services, then Spotify and Hulu’s announcement today of $9.99 per month for music and video is their way of hedging against whatever Apple will be announcing in two weeks.

For instance and out of complete speculation, let’s imagine that Apple continues to offer Apple Music for $9.99/mo. and offers their video streaming service for $9.99/mo. as well. It’s likely that Apple would also offer a discounted bundled version of these two services for just $14.99/mo. If this is the case, then its a no-brainer for Spotify and Hulu to offer a competing bundle of music and video for a full $5 less than Apple’s bundle of music and video.


Follow Doug Davis on Twitter @thedougdavis and get blog updates @autonomous_blog.