Spotify’s streaming service will have access to whole T-Series catalog
Top Internet companies have been looking to get a slice of the fast-growing Indian market. The country has seen an explosion in Internet-based services thanks to increasing Internet speeds, decreasing data costs, access to cheap smartphones, and a tech-savvy young population.
Music streaming giant Spotify (SPOT) may be late to that party, but it is ready to make a big splash in the country. Ahead of its entry in the coveted market, Spotify announced on Monday, January 14, that it has penned a deal with a huge Indian label, T-Series. This deal is massive for Spotify because it gives the music streaming giant access to the Indian label’s whole catalog of over 160,000 songs, which span from hit Bollywood numbers, non-film soundtracks, to regional songs.
Spotify faces stiff competition from local companies
Spotify will face stiff competition from local competitors like Gaana, Saavn, and Wynk, which have a strong foothold in the Indian market.
Spotify’s biggest rival, Apple Music, has a headstart in India, but given the limited reach Apple has in the country, its streaming service is not very popular. Google and Amazon (AMZN) Music also have a presence in the country. Amazon’s Prime service, which Amazon Music is a part of, has taken off in India.
The amount Spotify paid T-Series is not known. However, Spotify’s margins have been squeezed due to one major factor. The global labels have huge bargaining power over Spotify given that there are just a few.