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Spotify Isn’t Taking Chances in India


Mar. 7 2019, Updated 3:11 p.m. ET

Competing in a hotly contested market

Spotify launched its music service in India late last month, and the company is going all out to make sure it succeeds in the market. In India, Spotify (SPOT) is a latecomer to a market that is already competitive. A broad spectrum of music streaming providers from homegrown startups to international brands like Amazon (AMZN) and Google (GOOGL) are battling for the revenue opportunity in India’s subscription-funded and ad-supported digital music market. Google’s YouTube is one of the top spots for digital music fans in India. Amazon recently marked its first anniversary in India’s music streaming market.

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To succeed in a highly competitive market like India, Spotify is doing what it has done in any other market. The company has created unique features such as city playlists that show users popular songs in each city. Also, Spotify users on its free service can play songs on-demand. This feature is currently only available to paying subscribers in other markets.

Spotify waging price war in India

In addition to uniquely Indian features, Spotify is also trying to undercut the competition in India with more affordable music prices. Music fans in India can sign up for Spotify’s premium music plan for just $1.67 a month compared to $10 in the United States. Plus, Spotify is offering its Indian customers daily and weekly plans.

Spotify generated $1.7 million in revenue in the fourth quarter, which ended in December 2018, representing an increase of 30% YoY. Netflix (NFLX) and iQiyi (IQ) grew their revenues 27.4% and 55% YoY, respectively, in the December quarter.


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