As per reports, Global music-streaming giants Spotify for the first time confirmed their India launch. It’s going to be on ‘Investor Day’ presentation on Thursday. Spotify CEO Daniel Ek revealed that it was “working on launching in some of the biggest markets in the world.” This project also includes countries like Russia, countries in Africa, and others.
Launching In India.
Spotify’s recent IPO filing revealed that it has already found office space in Mumbai. There are still no confirmation and news where this project will begin. But reports suggest that the music-streaming giant might have already hired someone to lead its business in India. The IPO, meanwhile, is scheduled for April 3, Spotify said in the investor presentation.
Spotify revealed that its brand recognition is as good as 36 percent in the country. It is banking on the growth of “payment-enabled smartphones” in India and newer markets that will potentially add 1.3 billion users to the mobile ecosystem. Even if a portion of it is converted to paying music subscribers, Spotify has a great market in hand.
Global Status Of Spotify.
Currently, Spotify has 71 million paid subscribers. Also, Apple Music, known to be there key rival in the West, crossed 36 million subscribers in February. Amazon Music was estimated to have 16 million paying subscribers last October. Tencent Music, which is restricted to only China, now has over 120 million paying music-streamers. They observed in its investor presentation that young consumers were driving its growth. 72 percent of its users are under the age of 34, and half of them believed that Spotify is the only music service they need. But the real deal is in user engagement. And, Spotify seems to be doing handsomely on that front.
Spotify includes 159 million monthly active users (both paid and unpaid) log into the service daily. And many of them spend 49 minutes on it. This is the comparison with the daily user engagement of popular social networking apps like Facebook and Instagram. For paid subscribers, the daily usage is even higher.
Why They called India As ”Big Market”?
Spotify’s attention to India comes at a time when Amazon Music has just launched. Plus, Tencent Music has invested in local music-streaming service, Gaana in India also. Since app like Apple Music and Google Play Music are also in India, the battle for music-streaming supremacy in the world’s fastest-growing mobile market. Also might begin with Amazon’s entry and will only intensify once Spotify launched.
According to a recent report, Spotify and Tencent Music also entered an equity partnership last December. Both services now monitoring their own, stakes in each other. Since Tencent Music also has a massive customer base, Spotify’s strong network is in second place. It is also rumored that Google-owned YouTube is working on a dedicated music-streaming service.
Besides the global players, Spotify will also have to contend with regionally grown Indian music services including Gaana, Saavn, and others, which have to receive a large amount of popularity over time. While the market is littered, music-streaming revenues from India are projected to cross Rs 3,100 crore by 2020, according to Deloitte. There are now more legitimate listeners of digital music than ever before.