Spotify Overhauls Subscription Strategy in India
Swedish audio streaming giant Spotify has significantly transformed its paid subscription offerings in India, introducing a three-tier portfolio that marks a departure from its previous one-size-fits-all approach. This strategic restructuring comes just months after the platform implemented a substantial price hike across its existing plans, reflecting the evolving challenges in India's digital music landscape.
Three New Tiers: Lite, Standard, and Platinum
The new subscription framework includes Premium Lite at ₹139 per month, providing an affordable, ad-free listening experience for budget-conscious users. The Premium Standard plan continues at ₹199 monthly, offering full access to Spotify's extensive music library, curated playlists, and podcast content.
At the premium end, Spotify Premium Platinum launches at ₹299 per month, incorporating advanced features including AI DJ functionality, AI playlist creation tools, third-party DJ integration, mixing capabilities, and two additional household seats. This represents a significant upgrade from the platform's previous offerings that included individual (₹139), student (₹69), Duo (₹179), and Family (₹229) plans.
Addressing Market Challenges
This portfolio restructuring arrives during a particularly challenging period for music streaming platforms in India. Several prominent services including Airtel's Wynk, ByteDance's Resso, and Hungama Music have ceased operations, creating both uncertainty and opportunity in the market.
According to the annual Ficci EY media and entertainment report, India's music segment declined by 2% to ₹5,300 crore in 2024. More significantly, digital revenue—which constitutes the largest revenue stream—dropped from 68% of total revenue in 2023 to 62.4% in 2024. The report also noted declining per-stream rates for some music labels and highlighted how the industry's push to convert free users to paid subscribers has impacted overall music monetization growth.
Industry Perspective and User Education
Amarjit Singh Batra, General Manager for South Asia, Middle East and Africa and Managing Director of Spotify India, explained the rationale behind the new approach. "We are evolving our Premium subscription portfolio from the one-size-fits-all model to reflect the diverse ways people listen to music in India," Batra stated. "Every listener is different, so we're offering more choice, flexibility, and control from Lite to Platinum, ensuring everyone can experience Spotify in a way that fits their lifestyle."
The streaming market faces a significant challenge in converting India's vast free user base to paying subscribers. The Ficci EY report revealed that India had 192 million free streamers compared to just 12 million paid streamers in 2024, forcing platforms to rely heavily on advertising revenue that often fails to cover music licensing costs.
A JioSaavn spokesperson highlighted the industry's fundamental challenge: "The current licensing economics of providing free music in the ad-supported tier and the reality of advertising monetization doesn't stack-up. The fixed cost for music, which is independent of ad revenue, in the long run is unviable."
Music industry experts emphasize that educating Indian users about paying for music remains crucial for sustainable growth. As multiple streaming platforms exit the market and digital revenues contract, Spotify's three-tier approach represents a strategic attempt to capture different segments of the market while addressing the urgent need to grow subscription revenue in a challenging economic environment.
