Spotify, Hulu team up to woo young customers

 This photo illustration shows the Swedish music streaming service Spotify on March 7, 2013 in Stockholm, Sweden.
This photo illustration shows the Swedish music streaming service Spotify on March 7, 2013 in Stockholm, Sweden. PHOTO: AFP

BOSTON • This combination could make the grade among students in American colleges and universities.

Spotify and Hulu will offer their music and video services for a combined price of US$4.99 (S$6.70) a month - a US$13 discount - in a bid to sign up young customers.

Students can sign up for the Spotify package, which will include a subscription to Hulu's ad-supported video service.

The two companies will split the subscription fee.

This is the first time Stockholm- based Spotify has packaged the largest-paid, music-streaming service with another company's movie or TV product.

Hulu, based in California, offers customers reruns of Homeland and South Park, as well as original series The Handmaid's Tale and The Mindy Project.

A deal aimed at students could lead to further collaborations between Hulu, which is looking to gain ground on larger rival Netflix, and Spotify, which can use video services to retain customers who might be lured to rival Apple Music.

Young students with limited disposable incomes are among the most elusive customers for vendors of paid media services.

Comcast, the largest US cable provider, offers a special package to students at about 100 campuses.

BLOOMBERG

A version of this article appeared in the print edition of The Straits Times on September 09, 2017, with the headline 'Spotify, Hulu team up to woo young customers'. Print Edition | Subscribe