The idea here is to get more users to subscribe to its Premium service without having to pay as much. As it stands, users have to pay $9.99 for a Premium Spotify account. Two users would basically mean twice that amount. However with Spotify Family, the amount is halved, meaning that the second user only has to pay $5.
Essentially if you’re sharing with another family member, both of you would have to pay $14.99 for the Premium service, which makes it cheaper than both of you subscribing to the Premium service separately. Spotify Family will also allow users to add up to four additional family members where the total five users will end up paying for is $29.99 a month which is a pretty good deal.
These accounts will also be separate, meaning that the artists you follow and the playlists you subscribe to will remain independent from each other. Given that we have heard rumors that Beats Music is planning on dropping its price to $5, Spotify Family certainly sounds like a pretty competitive alternative.