New Delhi: Swedish audio streaming platform Spotify launched in India Wednesday. But entering India’s ₹1,280 crore music industry, where digital channels account for 65% of overall music sales, will not be easy for Spotify. Mint analyses the opportunities and the challenges.
Why has Spotify chosen to enter the Indian market now?
India has an estimated 481 million Internet users, with a 65% urban and 20% rural penetration. Its online audio market is likely to grow with increasing smartphone penetration and investments in music, besides its rich music culture. Spotify’s entry comes at a time when the regional music scene in India is exploding, with non-Hindi soundtracks making up about 30% of the total music consumption in the country. The firm, which has 207 million active users and 96 million paid subscribers globally, is also targeting the 30 million people of Indian origin living overseas.
What is currently on offer from Spotify?
For India, the audio streaming platform is focusing on Hindi and English music, as well as Punjabi, Tamil and Telugu. The Swedish firm had earlier announced a deal with Bhushan Kumar’s music label, T-Series, that gives it access to the latter’s enormous Bollywood and regional music catalogue, as well as its pool of independent music.
There are also reports of Spotify’s tie-ups with Times Music, Eros Music and Zee Music. The current Spotify interface offers curated playlists such as “Sound of Mumbai", “Sound of Delhi", “Chill Tracks", “Punjabi 101", “Indiestan", “Tollywood Pearls", “Bollywood Butter" and “Kollywood Cream".
What kind of competition is it up against in India?
Spotify’s competition includes streaming apps such as Gaana, which claims 80 million users a month, and JioSaavn that calls itself South Asia’s biggest streaming destination.
How much will a Spotify subscription cost you?
Spotify is available with both an ad-supported free subscription tier and a premium model. In the latter, you can start with a 30-day free trial followed by a payment of ₹119 a month for access to all the music and premium features on the app. There is also the option of a prepaid sign-up to premium features for specific durations. Access to Spotify Premium for a day costs just ₹13. A week-long premium subscription comes for ₹39, while a monthly subscription costs ₹129.
What challenges will Spotify face in India’s music industry?
While music piracy, both physical and digital, is declining globally, it remains an obstacle in India, despite various laws and the music industry’s efforts to fight it. Music firms continue to pay high sums to acquire film music. This percolates to streaming services in the form of high minimum guarantees. Many users copy music without taking permission or paying for it, leading to revenue loss for the industry. To curb this problem, payment mechanisms need to be simplified and listeners educated.
