This means that even though Spotify is gathering more premium users, the actual revenue it generates from those users can drop over time.Īnd, indeed, that’s what’s happening, according to the filing. Spotify is also pointing to its student plan, which costs $4.99 a month, as another contributing factor to those pressures. The premium user consists of the one master premium account, which pays for the subscription, and up to five sub-accounts for family members. In the filing, Spotify indicates that the fee for a family plan - which costs $14.99 per month - can be actualized over as many as six accounts total (though it might not always be six). Spotify’s “Family Plan,” a variation of which launched in 2014, as well as its “Student Plan” appear to be driving a significant portion of the company’s growth and improving retention, as the company points to it multiple times in its filing for a direct listing on public markets today.īut that also comes at a cost of decreasing the amount of revenue it actually gets from each premium subscriber.

Spotify family plans