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Switching from premium to family plan

I'm currently paying 4 premium accounts for me and my children.

For obvious reasons, I'd like to switch to a family plan. What is the right process?

Should I cancel my current accounts and create a new one?

Doing so, how do I make sure everyone can retrieve its playlists? 

Some sort of detailed step by step process would be of help here.

Thanks.

BTW, Family plan is a great and long awaited move! Congratulations.

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