Spotify plans India launch after failed efforts to acquire local competitors

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November 27, 2018 4:37 PM

The development comes closely after Spotify announced entering 13 new markets in the Middle East and North Africa, taking its presence to 78 markets.

Another report by Sweden’s technology news portal Di Digital claimed that Spotify’s planned India launch came after its failed efforts to find and acquire an Indian music streaming app.

Sweden-based music streaming service Spotify is expected to mark its foray in India over the next six months, according to a report by an American entertainment news website Variety.com. Spotify plans to provide an extended free trial period — beyond 30 days that it offers to its new customers globally.

The development comes closely after Spotify announced entering 13 new markets in the Middle East and North Africa, taking its presence to 78 markets, the report added.

Another report by Sweden’s technology news portal Di Digital claimed that Spotify’s planned India launch came after its failed efforts to find and acquire an Indian music streaming app.

Spotify had signalled its India entry during its investor day presentation in March this year. “We are working on launching in some of the biggest markets in the world, including India, Russia, and Africa which has a very rich musical culture,” co-founder and CEO Daniel Ek had said.

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Spotify reported 83 million paying subscribers in July this year, along with a net loss for the second quarter hitting $461-million mark.

In its IPO filing earlier this year, the company had announced leasing an office space in Mumbai last year. Spotify also stated that it has hired 308 employees in aggregate in 20 countries including India, Australia, Brazil, Belgium, and Singapore last year. The number of employees in India wasn’t disclosed.

Indian market is already home to multiple players that dominate the music streaming market including Gaana with more than 75 million users, Saavn that merged with JioMusic to rebrand as JioSaavn, Hungama, Airtel Wynk apart from similar services by Google Play, Apple Music and Amazon.

Earlier this year, major labels such as Sony, Universal, etc., have reportedly threatened to thwart Spotify’s launch in India by blocking licenses for the Indian market, arguing that Spotify is bypassing the labels and licensing music from artists directly.

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