“I read the news today, oh boy…”
The New York Times and Spotify have struck a deal to create one of the newest and most intriguing bundles in modern media.
People who subscribe to a one-year “All-Access” digital subscription to the Times will also have access to Spotify’s premium music streaming service, the companies announced on Wednesday.
The partnership pairs two companies that are both heavily dependent on the prospect of convincing people to consistently pay for their respective services, despite free alternatives having become the norm.
The package costs $5 per week at first, then $6.25 per week after the first year. “All Access” plans from the Times already run $6.25 per week.
The deal is only available for new subscribers.
The companies did not disclose how they will be splitting the revenue from this deal.
“At The Times we are not only dedicated to helping our readers understand the rapidly changing world around them, but also to helping them live better lives,” said Meredith Kopit Levien, executive vice president and chief revenue officer, The New York Times Company, in a press release.
The deal comes as the Times has enjoyed a surge in subscriptions following the election of Donald Trump. That has helped offset the paper’s decline in print advertising a problem that is pervasive across the newspaper industry. The company has set an ambitious goal to hit $800 million in revenue by 2020, which would be double what it generated in 2016.
Spotify is in the same boat. The company remains the leader in the streaming music market, but needs to continue to grow its subscriber base. Spotify still isn’t profitable, and is facing increasing competition from big players like Apple and Amazon, as well as upstarts like Tidal.
The bundling of two different types of media isn’t an entirely new phenomenon. Amazon has used its Prime service to put together product shipping, a Netflix-like streaming service, and a variety of other smaller features including some music. YouTube’s Red service offers streaming music alongside a video service that includes original content.