Spotify used its third-quarter investor call to confirm recent reports that it has begun enforcing household requirements on its Family Plan, describing the change as a routine upgrade to its verification process rather than a crackdown.
Under the new method, members on a Family Plan are asked to prove they live with the plan manager by scanning a QR code. The code is displayed on the plan manager's phone, and the member scans it with their own device, according to Spotify's support documentation.
Members who receive a notification have seven days to complete the QR code check. Those who miss the window cannot join another Family or Duo plan for 12 months and would instead have to move to an individual plan they pay for themselves. That could leave members who live away from the plan manager's home and have no near-term visit unable to complete the step in time.
The enforcement targets a familiar loophole: adults or friends who live apart sharing a single Family Plan subscription to pay less. Spotify's aim is to grow subscriptions to its profitable Premium plans, the company indicated.
When an investor raised the crackdown during the earnings call, Spotify co-CEO Alex Norström played down its significance. He characterized the verification effort as a routine improvement rather than a crackdown.
Norström also said the company's push to better verify users has no end date and will never be fully finished, describing it as an ongoing routine improvement.
The confirmation follows several days of reports that Spotify was rolling out the QR code verification method to Family Plan members.
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