Spotify is stepping up verification checks on its Family and Duo plans, targeting users who sign up together but don’t actually live at the same address. Members who fail the location check, or ignore the notification for seven days, lose access to the discounted plan and are barred from joining another Family or Duo plan for 12 months.
The move comes as Goldman Sachs analysts flag that a significant portion of Spotify’s subscriber base may consist of unrelated users splitting a Family plan simply to cut costs, rather than households sharing a single account as intended. Cracking down on that behavior could push some users toward individual, full-price subscriptions, a potential revenue lever for Spotify as it looks to improve margins.
Read the full story at Music Business Worldwide.