In making this offer to students Spotify is engaged in group pricing and they are targeting the students only
Spotify offers a new deal for students only. In this deal, they will get Spotify Premium, Hulu Limited and Showtime all for just $4.99 per month, which is half the amount they charged for a standard premium account. To qualify student has to provide their birthday or names to Spotify and SheerID (its third-party partner).
Part 1.
In making this offer to students, Spotify is engaging in group pricing, where market segments are students and non-students
By collecting Students' identities they will group them according to their classes, so they can get the benefits of Group pricing and they are only targeting students.
Part 2.
By requiring third-party verification for the discount, rather than simply requiring an '.edu' email address as many retailers do, Spotify effectively narrows its consumer base to students with the lowest reservation prices.
By requiring third-party verification for discounts, Spotify ensures that only students are getting the benefits of the offer.
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