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Spotify ramps up policy enforcement on family plans
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- DeepHorus
Spotify is ramping up enforcement of its Family and Duo plan policies by requiring users to scan a QR code in person on the plan manager's device. The streaming service confirmed the policy after Reddit users reported receiving the prompt. Those who fail to scan within seven days will be demoted to the free tier and barred from rejoining any Duo or Family plan for 12 months.
The policy requires that family plan members reside at the same address, a rule that had been minimally enforced. The QR code verification aims to ensure all users actually live together. However, it could affect legitimate families with children at college or spouses working away from home.
Goldman Sachs analysts, in an October 15 report titled 'Music in the Air: 10 Years On,' estimated that "a meaningful share of family plan users are not actual household members, but rather friends sharing a plan to reduce costs." The report, available via HITS Daily Double, noted that enforcement has been minimal and sees "additional monetization upside from tightening household verification."
The stricter enforcement could impact Spotify's subscriber numbers and revenue. If many users are friends rather than family, they may switch to individual plans or competitors. The policy also raises questions about defining a household in modern times.
Reactions on Reddit have been mixed, with some users frustrated by the burden and others supporting the crackdown on abuse. Spotify has not issued further comment beyond its support documentation. The QR code must be scanned on the plan manager's device, adding a logistical hurdle for separated families.
Looking forward, Spotify may expand enforcement to other markets and plans. The Goldman Sachs report suggests tightening verification could drive revenue growth. As streaming services seek monetization, such measures may become more common.
