Why India Matters to Spotify, and Why it May Not Deliver

There are two key reasons for such weak uptake to date:

1. Music plays a different role in India:Bollywood and devotional are two of the most widely listened to music genres, neither of which are mainstays of subscription services, nor streaming music consumption in general.
2. Income levels are low:the average per capita income is $553 a month, with the luxury of a music subscription far out of reach for most Indians, other than urban elites. Spotify’s $1.80 price point in India may sound cheap, but relative to average income, it is 9.3 times more expensive than $9.99 is in the US. So, Spotify would need to be priced at $0.19 to be the same relative affordability as in the US, which coincidentally is the price for its day pass.

Music Industry Blog

Warner Music and Spotify have been involved in a rather unseemly and very public spat this week over Spotify’s India launch. I’ll leave for someone else, the discussions of the potential implications of a blanket license for songwriter rights in India for an on-demand streaming service. Suffice to say, the words ‘can of worms’ come to mind. Instead, I am going to focus on why India matters so much to Spotify.

The next one billion, perhaps…

Spotify’s Daniel Ek has made much of addressing the next one billion internet users as part of Spotify’s long-term opportunity. Given the fact that China is effectively off the table for now and that sub-Saharan Africa is probably a generation away from being a major streaming market, India is the key component of that next one billion.

Europe and North America accounted for 69% of Spotify’s subscriber growth in 2018. While this…

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What The Music Industry Can Learn From The Beer Industry

Von Freude @INTERNORGA: Stoppt Massenbierhaltung! (Photo: Peter Jebsen – all rights reserved)

Interesting food (drink) for thought:

• The dynamics of the beer industry bear remarkable similarity to the recorded music business and there are some lessons that can be learned.
• Craft beer is like the music industry’s indie sector and vinyl sales rolled into one.
• The beer aficionado and the music aficionado are more important to their respective industries now than they have ever been and this will only increase.

Music Industry Blog

Over the next few weeks I will be writing a series of posts that illustrate what lessons the music business can heed from other industries. This is the first of these posts. Beer sales have been in steady decline for many years with the big brewers coming to terms with changing consumption habits of consumers and the impact of disruptive new models. Sound familiar? The dynamics of the beer industry bear remarkable similarity to the recorded music business and there are some lessons that can be learned. Beer sales have been declining since 2008 with the core baby boomer consumer base changing consumption habits and drinking more hard liquor and wine. In the UK the amount of beer drunk has fallen by 20% over the last 10 years while US beer sales have been falling since 2008. The number of new breweries went into decline and after years of acquisitions…

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