Spotify's Challenge: Turning a Profit

The Swedish music streaming firm has built an army of subscribers in India. Now it needs to make them count

- Shadma Shaikh

Not just for entertainment but also as a tool for mindfulness and focus. Many Gen Z users, who form a majority of India's Spotify users, claim that Spotify helps them avoid doom scrolling, highlighting it as a digital wellness tool.

Kumar Taurani, managing director of TIPS Music Limited, says that one of the most notable shifts in music streaming has been the rise of independent and non-film artists, who now have the ability to launch their careers without relying on traditional film soundtracks.

"With digital streaming services, an artist with a compelling song can launch themselves independently through platforms like Instagram, YouTube and Spotify," says Taurani. This shift has diversified the Indian music ecosystem by giving artists more opportunities to reach listeners.

Taurani says that for music labels, platforms like Spotify and YouTube Music serve different but complementary roles. YouTube's video-first approach ensures mass reach, while Spotify's curated playlists and algorithm-driven discovery allow for deeper audience engagement.

"While YouTube caters to a broader audience, Spotify's specialization is beneficial for the music industry," says Taurani, adding that the relationship between artists, labels and platforms like Spotify is symbiotic and interdependent for the growth of the ecosystem.

Steady Growth

"India was our 79th market globally and our objective was to grow gradually and for the long term and make sure that we bring the best listening experience for Indian users," says Amarjit Batra, managing director of Spotify India.