Music streaming app Spotify, which entered the Indian market in February 2019, has reported a 27 per cent growth in its monthly active users (MAUs) to 345 million in Q4 2020 on the back of ‘notable’ development of its services in the nation. While the quantity of MAUs for the complete year accelerated to 74 million vis-à-vis net additions of 64 million in 2019, the firm added 25 million MAUs in Q4 and benefited from “faster growth in India, US, and Western Europe, with India serving as a notable source of upside vs. our forecast driven by successful marketing campaigns,” Spotify mentioned in its quarterly outcomes statement. The music streaming service presently competes with Gaana, Wynk, Apple Music, Amazon Prime Music, JioSaavn, and more.
Spotify had launched its new subscription model Spotify Premium Mini in India that permitted customers each day and weekly access to a subset of their premium options for a reduced price tag such as 30 song downloads and limitless ad-absolutely free music on a single mobile for Rs 7 per day. The firm had also partnered with Flipkart to provide Premium service absolutely free for six months in exchange for buying for a specific quantity on Flipkart. Spotify had also released its very first podcast in Telugu on the life of late actor, producer, and politician NT Rama Rao.
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The company’s Q4 income grew 17 per cent year-on-year to $2.61 billion although the Premium service income grew 15 per cent YoY to $2.27 billion. The ad-supported income grew 29 per cent YoY to $338 million. “Going into 2021, Covid still has the potential to be a headwind as its difficult to fully gauge its impact. For Spotify, more time at home, resulted in more people discovering streaming and turning to our platform, but it also created disruption in listening habits, consumption hours, and the release of new music and podcasts,” mentioned Daniel Ek, CEO, Spotify through the earnings contact.
The Indian music streaming industry is anticipated to be worth $663m in 2021 and witness 14.2 per cent CAGR to develop into $1.1 billion by 2025, according to Statista. The user penetration from 4.3 per cent in 2021 would most likely scale to 6. per cent by 2025 although the typical income per user is anticipated to be $11.16. Moreover, the ad income from Indian music streaming industry in FY19 was about Rs 1,000 crore and is most likely to hit Rs 2,000 crore by FY24, expanding at a CAGR of 14 %.