Spotify is asking its family plan subscribers via email to confirm their location to ensure they are close to their families. Those who fail to confirm their home address may lose the discount offered with the family plan.
The emails have so far been sent to “Premium for Family” subscribers in Germany and the US. Many users have reacted to this, saying that not all families live together. However, Spotify clearly states in its terms of service that this particular subscription package is intended for you and your family if “you all live at the same address” and has a limit of 5 members.
A large number of active subscriptions are not in compliance with this specific term of use. According to research by Billboard, almost half of Spotify subscriptions are on a Family plan, as this way users can earn up to 75% off.
This practice seems to have a negative impact on Spotify's revenue, as from April to the end of June, the platform saw a 12% drop in revenue per user. In the past, the service allowed family plans without any control. This meant that multiple friends could use it even if they lived in completely different places.
It's not yet clear how aggressive Spotify's stance will be towards these users. "Spotify is currently testing some improvements to the Premium for Family. We're always testing new products and services, but we have nothing further to report on this specific trial."
