After nearly five years of operating in India, Spotify is introducing new limitations for its free users in the country, starting from October 9th, 2023. These changes will impact the music streaming experience for free users in India.
Spotify’s new restrictions for free users in India include the removal of the repeat function, the ability to skip back to specific parts of songs, the rearrangement of the streaming order, and disabling Spotify’s ‘smart shuffle’ setting. Users will be informed about these limitations through in-app messages along with explanations for the changes.
Despite these restrictions, Spotify India has witnessed significant growth over the past four and a half years, with India now ranking among Spotify’s top five countries in terms of active monthly users. However, India is not yet one of Spotify’s highest-earning regions, even though its conversion rate to paid subscriptions exceeds the local industry average.
In India, Spotify’s monthly individual subscription costs Rs 119 (approximately $1.45), significantly lower than the $10.99 per month fee in the United States. Additionally, Spotify offers ‘mini’ mobile-only subscription plans in India for as little as Rs 7 ($0.0085) per day.
Amarjit Singh Batra, the Managing Director of Spotify in India, explained that this decision is part of Spotify’s strategy to encourage users to move away from piracy and less satisfying services, ultimately converting them into premium subscribers on Spotify.
Batra expressed confidence that these changes will not impede Spotify’s growth in India. The platform aims to deepen its presence in local languages and cultures. Despite these restrictions, Spotify intends to remain one of the best free music services available in the Indian market.
Spotify’s announcement follows the transition of local competitors Gaana and Resso to subscription-only services. However, Batra stated that Spotify has no plans to increase subscription prices in India. Instead, the company plans to strengthen marketing partnerships and enhance fan experiences for premium users to drive conversions. These efforts include offering free premium memberships to customers of e-commerce companies like Flipkart and smartphone manufacturers such as OnePlus.
Although Batra did not directly address whether these new restrictions were in response to label pressure, he acknowledged that the size of India’s music market, relative to global markets, plays a role in label investments. In 2022, India’s recorded music market ranked 14th globally with revenues of $318.6 million, although per capita revenue remains relatively low. Spotify aims to change this by providing a platform for a broader range of Indian artists, ultimately increasing opportunities for success in the music industry.
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