Spotify ramps up policy enforcement on family plans

As reported by Music Business Worldwide, Spotify appears to be stepping up enforcement of existing policies regarding Family and Duo subscription plans by requiring users to scan a QR code in person on the plan manager's device in order to maintain access to it. Those who fail to scan the address verification QR code within seven days will see their account demoted to the free tier and be barred from joining any other Duo or Family plan for 12 months.

Spotify's support documentation verifies the policy after users on Reddit began posting reports of receiving the QR prompt. The enforcement stems from Spotify's requirement that family plan members reside at the same address—a seemingly reasonable policy in concept. But what if you have a child away in college, a spouse who works on the road, or any number of other circumstances that might see families separated by physical distance? The policy could extend beyond friend groups looking to save a buck, affecting actual families who thought they were using the program as intended.

Goldman Sachs analysts, in their October 15 Music in the Air: 10 Years On report, made available by HITS Daily Double, estimate that "a meaningful share of family plan users are not actual household members, but rather friends sharing a plan to reduce costs." The report goes on to add, "We see additional monetization upside from tightening household verification on multi-user plans. Most family plans require members to reside at the same address, but enforcement has been minimal in practice."

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