Spotify is serious about stopping Family Plan sharing
What's the story
Spotify is cracking down on users who share their Family Plan subscriptions too widely. The company's co-CEO Alex Norstrom confirmed this during a recent earnings call. He said the company is using a new QR code verification method, which requires users to scan the plan manager's phone, to identify these cases.
Verification process
Not a crackdown, but 'routine improvement'
Responding to questions about the "crackdown," Norstrom clarified that it is not a crackdown but rather a "routine improvement" of Spotify's verification methods for its Family Plan, TechCrunch reported.
He explained that this plan has been around for nearly 12-13 years and constitutes a significant portion of their subscriber base.
Therefore, it's crucial for them to continuously improve the verification methods over time.
User impact
Users get creative to continue shared premium subscriptions
The new QR code verification method has already started impacting users.
If a plan member misses the seven-day window to scan it, they are barred from joining another Family or Duo plan for 12 months.
This has led some users to come up with creative ways to continue their shared Premium subscriptions.
Subscription strategy
Why is Spotify so concerned about Family Plan?
The QR code verification method is part of Spotify's strategy to boost subscriptions to its profitable Premium plans.
The company wants to prevent people who don't live together from taking advantage of a cheaper plan by splitting a Family Plan subscription.
If the verification window is missed, users have no option but to switch to an individual plan they pay for themselves.