Spotify Aims for U.S. Expansion Through Sprint Deal

Spotify has finally nailed down a key partnership that could help it reach a larger audience in the United States. The music streaming service announced today that it is offering extended free trials and discounted subscriptions to Sprint customers.

All of Sprint’s nearly 30 million postpaid customers will qualify for a three-month free trial to Spotify. Customers on Sprint’s multi-line “Framily” plans will get six months of free Spotify, then pay a discounted rate of $7.99 per month or $4.99 per month depending on how many people are on the plan. Spotify regularly costs $9.99 per month.

Partnerships with telecoms providers are a holy grail of sorts for streaming services, which are used heavily on mobile devices. With the Sprint deal, Spotify will be able to slide its fees directly into customers’ cellphone bills, making for a more seamless payment process. The deals are also an opportunity for exposure to a broader market of customers who may not be familiar with on-demand streaming apps. Beats Music, for instance, launched a high-profile campaign with AT&T earlier this year that offers discounts to AT&T’s wireless subscribers and features television commercials with stars like Ellen DeGeneres and Run-DMC.

Spotify remains the leader in the music streaming space, with recent reports indicating that its paying subscriber base is approaching 10 million. Beats, a similar service from Dr. Dre and Jimmy Iovine, is the newcomer with the deepest pockets and the highest pedigree. However, the service is reportedly off to a modest start since its January debut, with Billboard reporting a subscriber count in the “low six-figures.”

The Sprint deal takes effect online on May 2 and in stores on May 9.