Spotify is wooing U.S. college students with a $5-a-month premium music deal, half off the regular rate.
It hopes to entice a generation of music lovers that is more likely to stream music than buy CDs to pay for better features and mobile access.
The $5 monthly service announced Tuesday applies to students of post-secondary institutions eligible for federal aid programs, including two-year colleges and vocational schools. The price reverts to normal after graduation.
Jeff Levick, Spotify’s chief marketing and revenue officer, says a similar program in Britain has increased the number of paying Spotify customers over the last year.
He says Spotify is focused on people aged 18-24 because they make up the largest group of users and grew up streaming music rather than paying for song downloads.