Spotify India’s growing subscriptions in a price sensitive market
In 2019, global music streaming platform Spotify launched its music streaming app in the Indian market. Based on ad and subscription revenue model, the Company based in Sweden spilled Rs 16.12 crore in operating income in FY20.
His subscription income of Rs 9.75 crore represents around 65% of total turnover.
“We’re here to help the music industry grow. We are here to help artists and music makers gain recognition, not only in India but around the world, ”said Amarjit Singh Batra, Managing Director of Spotify India.
He says Spotify is making a habit of streaming for its Indian user base as it works on a solution to make streaming the primary destination for people to listen to music. India is a price sensitive market because people are not inclined to pay for their music. With this in mind, Spotify India is looking to encourage a gradual surge in subscriptions.
He believes that the company’s strategy of offering a variety of paid plans to listeners has helped increase the number of its subscriptions. The music app offers packages that target multiple combinations, such as family, students, duo, mini premium and its standard plan.
For Spotify, India is going to be a long-term investment, says Amarjit.
According to a VTION study in January of this year, Spotify holds 15% of the total market share in the Indian music streaming market.
Industry experts have also seen a 40% increase in the number of people subscribing to streaming music and spending time on these platforms during the COVID-19 pandemic. Despite the lack of new stuff, people were discovering the music, and Bollywood’s early hits were still top of the charts.
Besides music, streaming platforms are also exploring the potential of podcasts. There has been a noticeable increase in the number of podcasts and their popularity. This has led Spotify India to include a multitude of genres in podcasts to retain users, including those who use the app for music.
“India is turning out to be an amazing growth story,” Amarjit launches on the platform’s growth trajectory. According to PwC’s Global Entertainment and Media Outlook 2020 report, India has 57.6 million monthly listeners, making it the third largest consumer of podcasts.
To further strengthen this growing segment, Spotify launched a podcast maker, Anchor, which allows creators to record and edit podcasts, which are then uploaded to Spotify.
In fact, the platform is seeing strong buy-in from regional Indian users who are embarking on content creation.
Going forward, Spotify India will continue to pivot “the passion economy” as it prepares to upgrade its platform with new features.
To gauge the popularity of podcasts and audiobooks, the platform is introduction of a Music + Talk function, which features spoken content with music.
The company also offers a “Blend” feature that connects two users and combines their recommendations.