published Tuesday, March 25th, 2014

Spotify slashes prices for US college students

LOS ANGELES — Spotify is wooing U.S. college students with a $5-a-month premium music deal, half off the regular rate.

It hopes to entice a generation of music lovers that is more likely to stream music than buy CDs to pay for better features and mobile access.

The $5 monthly service announced Tuesday applies to students of post-secondary institutions eligible for federal aid programs, including two-year colleges and vocational schools. The price reverts to normal after graduation.

Jeff Levick, Spotify's chief marketing and revenue officer, says a similar program in Britain has increased the number of paying Spotify customers over the last year.

He says Spotify is focused on people aged 18-24 because they make up the largest group of users and grew up streaming music rather than paying for song downloads.

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