Spotify Faces Several Challenges in India

Music streaming giant Spotify (SPOT) continues to grow its global subscriber base.

Sanmit Amin - Author

Feb. 28 2019, Updated 3:10 p.m. ET

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Spotify has been preparing for its entry into India

Music streaming giant Spotify (SPOT) continues to grow its global subscriber base. The Swedish company’s subscriber base grew to 96 million at the end of the fourth quarter, a 35.2% increase from a year back.

The company has been making its service available in several markets over the last few months. The streaming company has been targeting entry into India, the largest untapped market in the world, as more Indians are now getting access to Internet and smartphones. In January 2019, Spotify, which is expected to launch its service in India soon, announced that it has penned a deal with one of India’s leading music and film companies, T-Series.

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Spotify’s bid to enter India has hit a snag

However, it seems that Spotify’s entry into the market has hit a snag. While Spotify has completed licensing deals with music labels Universal Music and Sony Music, it hasn’t done so with Warner Music Group. In fact, according to a report by Bloomberg, Warner Music Group has filed a complaint with the Bombay High Court and asked the court to deny permission to Spotify to play songs from its artists.

Spotify’s attempt to enter the Indian market has been delayed a number of times due to various factors. Even when it eventually does enter the market, it faces stiff competition from local rivals like Gaana, Saavn, and Wynk along with Amazon (AMZN) Music, Apple (AAPL) Music, and Google’s service.

Additionally, Spotify’s paid premium service may not attract a lot of price-sensitive consumers in India.


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