Spotify is set to enter the Indian market in the new year, after signing a major licensing deal with one the largest record labels io the subcontinent, T-Series, known for producing mostly Bollywood music soundtracks. Spotify users will now have access to over 160,000 songs from T-Series' catalog.
Spotify has been signing deals with Indian labels in order to increase its local content, a crucial step before venturing into the growing Indian market. Outside India, Spotify has 4 million users who listen to Indian music and Bollywood is the most popular search key.
Spotify’s 200 million monthly active users, in-line with its fourth-quarter guidance, was a major boost for the company to venture into the Indian market.
But the venture won’t be easy. Announced in March 2018, two of the largest local music services, Saavn and JioMusic, officially merged just last month to create JioSaavn that offers a 90-day extended trial of JioSaavn Pro to Jio subscribers. Spotify may also follow these footsteps.
Although Apple Music is Spotify’s biggest competitor, but the Swedish company’s free tier offer has been a key differentiator.
Regarding prices, it is still unclear how much the premium would charge in the Indian market. JioSaavn Pro costs just 99 INR per month, or less than $1.50. In keeping with these references, Spotify will have to balance its growth aspirations, prices and satisfying record labels. Spotify generally prices its premium service differently based on the market, and it's unclear how much it will cost in India or how it is planning to tap the market.