Spotify may have not locked down all the major players from India yet, but (just as it did in Indonesia and Africa) It may go live without the buy in from all the labels and Instead look to evolve in the market place once launched. Sources arE now indicating Spotify could be live in India by January 31st.
Deals with the three major-label groups — Sony, Universal and Warner, are still not signed and sealed, and it now looks likely Spotify will be launched in India without them. Those companies are not as big in India as they are in many other countries, and Monday morning’s announcement that Spotify has inked a content deal with T-Series, the country’s leading music and film company, ensures that it will be rolling out with plenty of popular content.
However, Spotify’s launch in India hinges on additional deals that are yet to be finalized. While the app will be available in English, the company hopes to expand into different regional music markets in India, a country with 1.33 billion people and dozens of dialects — music in five languages is expected to be available on the initial launch.
While the partnership with T-series covers a wide range of commercial Hindi music, including Bollywood soundtracks, the main regional music dominating India includes Punjabi, Tamil, Telugu, Malayalam and Bengali, which likely means connections with labels specializing in those languages.
Spotify is rumored to be hosting a launch party in Mumbai on January 31, which means they’re working against the clock to secure deals before the end of the month.
Just before Spotify’s public listing last March, the company announced that it had opened an office in Mumbai and hired 300 people, but it faces a steep challenge in India. As we reported in November, it will launch with an extended free trial period that sources say will be significantly longer than the 30 days of full-access that was offered in Vietnam and South Africa in 2018.
While a Financial Times report earlier this month said that the length of the free-trial period was a major cause of the holdup, a source tells Variety that the sticking point is actually the royalty Spotify initially offered for the free-trial period, which is said to be dramatically lower than the local services are paying.
Even if the licensing is secured, more obstacles remain. In addition to the fierce competition from local streamers like Saavn and Gaana (which sources say Spotify had considered purchasing in the past), Spotify could be staring down a potentially slow conversion from free to premium, and large sections of the country have broadband difficulties; although Internet access is inexpensive in India, infrastructure is still developing in many areas.