Audio streaming service suppliers have the arduous job of producing subscription income from an viewers that has for lengthy taken music to be a free commodity in India. To woo prospects, streaming platforms like Spotify and Gaana have begun to go the video streaming platform means, with bundled presents and reductions by way of partnerships.
Spotify, for occasion, has partnered with Citibank and Flipkart to provide reductions on subscription plans. Airtel subscribers can now avail YouTube Premium (together with YouTube Music Premium) for three months for free. Meanwhile, Flipkart Axis Bank bank card prospects can get entry to 15 months of Gaana Plus at a reduced worth.
The strategic bundling of video streaming subscriptions by way of telecom operators was an inflection level for the trade, with a number of presents within the offing. Telcos used this to improve information consumption, as video streaming is a knowledge guzzler, and streaming companies may attain the large database of telecom prospects.
As per a KPMG research on the media and leisure trade, the Indian audio streaming market contains 200 million month-to-month energetic listeners, of whom simply 1% are paid subscribers. “The greatest challenge to growing subscriptions for streaming platforms is that users have a plethora of free streaming options to choose from. And piracy is rampant,” mentioned Ajay Gupta, lead companion, communications, media and know-how, AT Kearney.
In its quarterly report, Spotify introduced that its advertising and marketing campaigns in India have helped add subscribers in the course of the July-September quarter. “Through our partnerships, consumers can integrate Spotify into their other experiences,” says Akshat Habola, head of market technique and operations – India, Spotify. The service plans to additional localise its technique for India by way of content material, subscription plans and business partnerships.
Subscription plans for these platforms are various and particular to the wants of shoppers. “We have identified that listeners have different priorities. Some may just want an ad-free experience while others may want high-quality audio and the facility to download music. So, we have decoupled these benefits,” says Prashan Agarwal, CEO, Gaana.
As a end result, one can decide for an ad-free expertise for a payment of simply `10 per thirty days or pay `99 per thirty days for the Gaana Plus membership that enables limitless downloads and HD high quality music streaming. Spotify, alternatively, has 15 totally different subscription plans, together with ones for college students, households, pay as you go shoppers, postpaid shoppers, and Duo for two customers. As per Spotify’s newest quarterly report, the rollout of Duo has given impetus to its subscriber progress globally.
Student plans, that are considerably cheaper than particular person plans, are anticipated to construct habits among the many youth who may then transfer on to different subscription plans. However, Gupta says that giving the buyer too many choices might lead to confusion, leading to individuals not making a choice. The forecast is that because the market evolves, these choices will cut back.
Finally, content material, too, is enjoying a pivotal position in buying subscribers and better income. “The quest for higher volume is one of the reasons music subscription services are buying podcasts. These can not only help increase user engagement, but also create new avenues to boost ad revenues,” observes Rajib Basu, companion and chief, leisure and media, PwC India.