Today, two major streaming services, Hulu and Spotify, have announced a joint subscription bundle for $12.99 a month. The plan, which is marketed as “Spotify Premium, now with Hulu”, allows users to take advantage of Spotify’s music streaming subscription as well as Hulu’s entry-level on-demand television and movie streaming service. As noted by Variety, when bought separately, the two services would cost about $18. This new package is only available for existing U.S.-based Spotify Premium members, though the companies have also noted that they plan to expand the joint offer to those not already subscribing to Spotify later in the summer.

This joint subscription service makes financial sense for both companies despite the discount being offered, as it’s likely that both Hulu and Spotify will grow their user bases substantially with the deal. As Variety notes, the bundled package also allows the two companies to “to steer subscribers away from third-party billing agreements, which can eat up as much as 30% of a service’s monthly fee. Spotify’s terms for these bundles specifically spell out that users who bill their monthly subscription through Apple’s App Store or Google Play are not eligible to receive the discounted Hulu add-on.”

Hulu and Spotify, both media-streaming juggernauts, have worked together in the past. Spotify Premium users have previously been offered a deal to try Hulu for three months at a cost of only 99 cents. Furthermore, the two companies ran a special bundled package last September, offering students use of Spotify Premium and entry-level Hulu at a combined price of $4.99 a month—this bundled package seemed to serve as a test run for the current joint subscription package announced today.

As Spotify chief premium business officer Alex Norstrom said in a statement, “Our student launch with Hulu was incredibly well received and we are excited to extend our reach by bringing Hulu to more of our Premium members in the U.S.”

Hulu SVP Tim Connolly agreed, noting, “Based on the outstanding performance of the Spotify and Hulu student package, it’s clear that consumers love to combine their music and television experiences together.”

[H/T Variety]