Spotify, Sprint Unveil Music Bundling Offer

Spotify and the No.3 wireless operator Sprint unveiled their music offer as part of the phone company’s ‘Framily’ plans, with premium service going as low as $4.99.

The two companies did not initially reveal details of their marketing plans, but it is widely expected that Spotify will feature in Sprint’s ad campaigns.

“It’s the biggest deal we’ve ever done,” said Spotify CEO Daniel Ek at a press event in New York with Sprint.

The music labels have for some time been wanting Spotify to reach a deal with one of the major wireless carriers in a bid to help take on-demand streaming music to mainstream America.

Though Spotify is currently the market leader, with more than 2 million subscribers in the United States, the industry's concern has been that the Swedish company has done too little in marketing and advertising.

As part of Sprint’s ‘Framily’ package for 1-5 people, customers will have premium Spotify for free for six months and then pay $7.99 for the next 18 months, after two years it will be priced at the regular $9.99. For packages covering 6-10 people it starts at $4.99. Non-'Framily' members will have 3 months free and then pay $9.99.

The new partnership puts Spotify in more direct competition with Beats Music which has a similar deal with the much larger AT&T Wireless.

The Spotify/Sprint announcement is part of the Sprint’s new Sound Sessions offer for customers and was announced alongside the launch of the HTC One (M8) phone which features "Clari-Fi," an audio technology developed by Harmon/Kardon.

Sprint, which has 54 million subscribers, announced earlier on Tuesday that it reduced its customer losses in the first quarter. Wireless companies increasingly look to content like music to help keep customers loyal.