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Can Spotify Differentiate Its Service in India?


Mar. 1 2019, Published 11:07 a.m. ET

Spotify’s service in India

Spotify (SPOT), a music streaming giant, has delayed its launch in India numerous times. According to a report by Variety on February 26, Spotify launched its service to some users in India. The company officially rolled out the service on November 27.

For a price-sensitive country, Spotify will offer its service free for the first 30 days. After that, the charge will be 119 Indian rupees per month or $1.67. The company will also offer single-day, weekly, monthly, three-month, six-month, and annual subscription plans. Spotify will also offer its free, ad-supported service.

Spotify has faced several roadblocks since it announced its intention to enter India. The company has been preparing for the launch in India. Spotify signed a massive deal with T-Series—a major music label in India.

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Stiff competition in India

Entering the biggest untapped Internet market in the world could be a big deal for Spotify. However, the company will likely face competition from local rivals like Saavn, Gaana, and Wynk, which already have solid footing in the country. Amazon (AMZN) Music, Apple Music, and Google are already present in India.

Apart from the competition, Spotify might not be able to attract as many paid subscribers due to India’s low income. While access to the Internet has improved dramatically, the infrastructure is far from strong, which might hinder Spotify’s service.

However, Spotify’s curated and customized playlists could differentiate the company from other services in India.


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