Spotify just made a tiny dent in India’s fast-growing market

Spotify now has over 1 million users in India who count both free and paid premium accounts. The representative of this company confirmed to The Verge . The streaming platform quietly arrived in India six days ago with a legitimate war on whether to include catalogs published by Warner Music publishers.

Spotify does not typically release these kinds of initial metrics, so it can not tell how these 1 million user milestones are stacked compared to other zone releases. But the Indian music market can be seen in the larger context of the streaming music market.

The total population of India is 1.34 billion, but the population joining music streaming service is only about 11%, about 150 million people. A report released by Deloitte and IMI, India's music industry group earlier this year. Only 1% of the 150 million subscribers pay the subscription, and about 14% subscribe (eg Amazon Prime or mobile contract). The remaining 85% stream music with a free subscription. So, while there are one million people, Spotify is reaching less than 1% of the Indian music streaming population and is expected to have few paying subscribers.

The cost of music services in India is not small. Pay a lot. For example, a subscription to Apple Music in India is Rs 120 ($ 1.69), compared to $ 9.99 a month in the United States. Spotify is slightly weakening Apple by offering a flexible prepaid rate of up to Rs 119 (about $ 1.67) and a daily pass to six months of access.

Excluding all of this, India is the world's second largest smartphone market and the data rate of millions of new users joining online services each month It is considered a "sleeping giant" of falling music. Gaana CEO Prashan Agarwal said Quartz expects the industry to grow to 400 million consumers in the next couple of years. There does not seem to be a similar revenue increase. The existing gap between music streaming and value in India is so large that companies should expect to continue to rely on advertising and telecommunications subsidies as their primary source of revenue.

After the launch, we will let you know how the spot grows in India. Its position is generally confined to gaming, Apple Music, Amazon and Google Play, along with local services such as JioSaavan and Gaana, which are late to the game and dominate some 80 million users. (This is about half of India's active music streaming market.) It is hard to see how the missing tracks from Warner / Chappell Music affected the number of people who joined Spotify in India. According to the Nielsen report, the most popular genre in India is Bollywood, followed by "other Indian movie music", Indian pop, and Indian private sector. Western pop ranked fifth.

Spotify is currently negotiating a deal with Warner, and is prohibiting the music from Warner's published catalog from appearing on Spotify in India. Barry McCarthy, Chief Financial Officer at Spotify, acknowledged a lot in an interview last week. McCarthy said at the Morgan Stanley meeting, "It is not about India." "

According to Spotify, Warner said," I canceled the publishing license I had previously agreed to because it is not related to the launch of Spotify in India. "Spotify has evaded:" Broadcasters "have made direct deals with Warner using controversial amendments in Indian law that even if the copyright owner refuses to use it, they can get a license for the work. Warner Music publisher Warner / Chappell Music ordered to be released in India without a catalog

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