Over the past decade, Spotify has grown to become the world’s biggest music streaming service and yesterday; the company announced that it had launched its operations in India. The mobile internet explosion in India has been massive over the past five years, and it is not a surprise that Spotify has decided to take the plunge. However, the music streaming company is going to make its plans far more affordable in India as opposed to its normal prices for the premium service.
The consumption of content through mobile internet is all set to reach historic levels in the years to come, and it is perhaps the best time for Spotify to make a grand entry into the market. The Chief Executive Officer and founder of the company Daniel Ek said, “India has an incredibly rich music culture and to best serve this market, we’re launching a custom-built experience. Not only will Spotify bring Indian artists to the world, but we’ll also bring the world’s music to fans across India. Spotify’s music family just got a whole lot bigger.”
Spotify offers a range of plans for its users. At the basic level, users can listen to music for free, but they will be bombarded with ads. If they do not want a completely ad-free experience, in addition to the privilege of storing music and listening to it offline, then there is the premium plan. Needless to say, the premium plan is supposed to be the biggest user-based revenue stream for Spotify and users are usually charged $9.99 per month. However, in India, the same plan is going to be priced at $1.67 (Rs. 99) per month, and in addition to that, users will also get to use the app for free in the first month. That is a huge discount, but at the same time, many believe that it is an introductory price and eventually it will rise once the market is captured.
The Managing Director of Spotify’s India operations Amarjit Singh Batra was enthused about the mobile internet growth in the country and believes that music streaming is going to grow. He said, “The mobile internet revolution has led to a rapid rise in the number of connected Indians, making music streaming the preferred way to enjoy the music here.” In this regard, it is important to note, that India is home to a range of music streaming apps like Saavn, Gaana and Amazon Music, which is why it is going to be interesting to see how Spotify navigates its entry into one of the world’s most exciting markets.