Spotify working on India launch: CEO Daniel Ek

Spotify working on India launch: CEO Daniel Ek

Vikas SN  |  ETtech  |  March 16, 2018, 07:00 IST

 

Music streaming giant Spotify is working on launching its service in India, co-founder and CEO Daniel Ek confirmed during the company’s investor day presentation.

“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,” Ek said.

However, Ek didn’t disclose any specific details or the timeline for the India launch. Earlier this month, Spotify had disclosed in its public offering filing that it has leased office space in Mumbai last year.

The company had also noted that it has 308 employees in aggregate in India and 20 other countries that include Australia, Brazil, Belgium, Singapore, Spain, and Turkey among others at the end of 2017, but didn’t provide any specific headcount for the India market.

ET had earlier reported that Spotify has hired Akshat Harbola as the head of its India operations.

During the presentation, Spotify’s chief marketing officer Seth Farbman claimed that Spotify is already well-recognized in markets like India where it is yet to launch, adding that the aided awareness for the company in India is at 36%.

This development comes about a fortnight after Amazon debuted its music streaming service Prime Music in India and rival Gaana* raised $115 million funding led by Chinese giant Tencent. Other players in the country include Apple Music, Google Play Music, Saavn, and Hungama.

Spotify to go public on April 3

Spotify, the largest music streaming service with 71 million paid subscribers, is taking an unusual route to public markets through a direct listing, that essentially eliminates the need for a Wall Street bank or broker to underwrite a public offering along with many associated fees.

During the presentation, the company said it will begin trading on the New York Stock Exchange on April 3, prior to which it will provide financial guidance for the first quarter and for 2018 on March 26.

Read: Spotify’s public offering: Everything you need to know about music streaming giant’s unusual direct listing

On Tencent Music partnership

In December, Spotify and Tencent Music bought minority stakes in each other for cash. Ek said this deal was purely a financial investment for the company.

“Our view is that the Chinese market isn’t necessarily very favourable to western companies, so our view was we wanted to get exposure to that growth” Ek said “Of course we’re trying to learn from that business, as they’re trying to learn from what we do, but that’s the extent of the partnership.”

Other notes from Spotify’s investor day presentation

– 72% of Spotify users are under the age of 34, and 43% are under the age of 24.

– 75% of Spotify users are using the service on multiple devices. Spotify has more than 250 partners across televisions, cars, laptops, receivers, and speakers among others.

– More than 50 million users are listening to Spotify in their cars.

– Mobile and connected devices now make up for 73% of total Spotify streams, up from 45% in 2014.

– Premium users stream on average more than 80 minutes of content per day.

– 30% of Spotify streams are ‘algotorial’ (a combination of editorially curated playlists and algorithm-driven playlists).

– About 10 billion artist discoveries are made by users every month, of which 5 billion discoveries are from its editorially curated programming.

– Spotify is collecting 3 billion music-related events a day from its listeners. “We now have more than five times the amount of music data that our nearest competitor does,” said Gustav Soderstrom, Spotify’s chief research & development officer.

Spotify working on India launch: CEO Daniel Ek

– Spotify’s year-end recap ‘2017 Wrapped’ that gave users insights into their listening habits over the past twelve months, drove 6.1 million new premium subscriptions and registered more than one billion streams in 10 days.

– Spotify marketplace now has more than three million artists who contribute 20,000 pieces on a daily basis. The company hopes to increase this base to 10 million artists.

– Around 100,000 artists are currently using the Spotify for Artists product. These artists account for 67% of the streams on Spotify.

*Disclosure: Gaana was incubated by Times Internet that owns ETtech

Source: https://tech.economictimes.indiatimes.com/news/internet/spotify-working-on-india-launch-ceo-daniel-ek/63324267