Spotify now a major player in fragmented Indian music streaming scene
Global music streaming market leader Spotify had its sights set on another big market when it moved into India. That was only six months ago, but the company’s bid for future growth is already showing strong signs of success. This month, Spotify’s managing director in India, Amarjit Singh Batra, revealed that the company is now “among the top three players” in Indian music streaming. It got there, largely, through well-timed out strategic moves… and it’s clear that, when it comes to cultivating an audience, Spotify is looking at this as a long-term endeavour.
Spotify’s share price has climbed by 35% so far this year
Source: Yahoo Finance
Spotify is looking to India because of its massive young population and increasing economic development – there’s no doubt that the country represents a potential goldmine for Spotify and other big players. But in India, Spotify faces a unique challenge: the music industry is fragmented, with Hindu devotional music and Bollywood songs being amongst the most popular genres, sung in multiple regional dialects, and with copyright spread out between a multitude of bit-players. That the company has navigated this scene so successfully should give investors confidence in its ability to capitalise.
A month after launch, Spotify had 2 million active users in India. Now, that figure has shot up and propelled the company into the top three players nationally. Singh Batra told the press:
“Even though we are early into our India journey, it has been encouraging, special, and exciting on multiple fronts. Three things have stood out clearly. First, the user love is immense. It was humbling to see how our launch, and then our marketing campaigns, sparked such fun and relevant banter on social media, with not just users but even artistes and brands joining in. This, along with the excitement around Spotify, enabled us to garner over one million users within the very first week of our launch. Second, India is unique, given its social and cultural diversity, so we’ve been invested in how users consume music. English pop, Tamil and Telugu film music, Punjabi non-film music, and Hindi independent music have all found their fans. Third, it has been a continuous learning curve for us with regard to localising the product to make more sense for a country as heterogeneous as India.”
Dominion holds Spotify in its Global Trends Luxury Fund.
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