Spotify is in the process of cracking down on Family Plan users who are no longer residing at the same addresses as their relatives…
Music streaming service Spotify offers different plans at different prices. Two of which are a standard plan for individuals, which costs $10 per month and a Family Plan, which costs $15 per month for up to six members.
Spotify Family Plan Location Reverification Cracks Down on Abuse
Spotify loses quite bit of money on its Family Plan. For every plan, the company potentially leaves cash on the table. For instance, if six people opt into a Family Plan, the cost per is just $2.50. That’s an effective discount of $7.50 per month, compared to the individual plan.
Since it’s such a savings, Spotify is cracking down on people who break its rules. As a result, the company will now periodically confirm users’ addresses.
This approach might or might not pay off in the long run. It could prod people into forking over for individual plans. Or, they might just migrate over to other music streaming services which don’t demand location verification.
Here’s the relevant section of Spotify’s terms and conditions for its Family Plan:
“Eligibility and Verification
A. In order to be eligible for the Premium Family Subscription, the primary account holder and the subsidiary account holders must be family members residing at the same address.
B. Upon activation of a subsidiary Premium Family account, you will be asked to verify your home address.
C. We may from time to time ask for re-verification of your home address in order to confirm that you are still meeting the eligibility criteria.”