Spotify's free users in India lose access to key features
What's the story
Popular music streaming service Spotify is rolling out new restrictions for its free users in India, hoping to boost paid subscriptions. Starting today, free users will no longer have the ability to play songs in a particular order in a playlist, repeat tracks, return to previous songs, or move to a specific part of a song to listen to. The company says these limitations are being introduced to create a more consistent experience across all markets.
Facts
Here's what Spotify free users will continue having access to
There will be no listening limit on the number of hours free users can stream and they can still choose the song they wish to play. To repeat songs, users would have to head back to their playlist and select the song of their choice again. In India, Spotify's plans start from Rs. 7 per day to Rs. 119 per month for individual accounts and up to Rs. 179 per month for family accounts.
Default
Smart Shuffle becomes the default mode for free users
Additionally, for free users, Spotify is making Smart Shuffle the default listening mode, which cannot be disabled. Launched in March this year, Smart Shuffle adds personalized song suggestions to playlists that match the 'vibe' of existing tracks. Users can add or hide songs per their wish. This feature is expected to launch in other regions soon. Meanwhile, the traditional shuffle mode will now be exclusive to premium subscribers.
Details
Competing with subscription-only streaming services like Gaana
Spotify's change comes as competing streaming services like Gaana and ByteDance's Resso have shifted to subscription-only models in the past year. However, Spotify has not raised its prices in India, even as it has increased prices in other markets like Canada, Germany, the US, Australia, and the UK. The new restrictions could help Spotify compete with these subscription-only services and grow its paid subscriber base in India.
Insights
India is among the top five markets for Spotify
Subscriptions make up the majority of Spotify's revenue, accounting for nearly 87% of the company's total revenue in Q2. Since entering the Indian market in 2019, Spotify has seen significant growth in its user base. India ranks among the top five markets for Spotify in terms of user base and has been showing "better-than-expected" monthly active user growth in recent quarters. However, India has yet to make a substantial contribution to Spotify's overall revenues.