Music streaming company, Spotify, announced its financial results for Q2 FY2019 yesterday. The company missed its subscriber targets, but total listeners on the platform grew to 232 million, a 7% rise over the last quarter, and 29% rise from the 180 million listeners it had last year.
However, the company’s subscriber count suggests that about half of these users are on the company’s ad-supported business. Spotify has 108 million paid subscribers, according to the report, and the company said Asia “remained its fastest growing region" for the ad-supported business. The company also admitted that this is below its guidance range of 107-110 million paid subscribers.
While the company didn’t share the number of listeners or subscribers it has in India, Spotify had hit the millions within months of launching here. The company said that its performance in India was “in line with expectations".
India has been touted to be a big market for streaming platforms like Spotify, but experts have often said that ad-supported and free to use models are the ones that are growing in India.
“We in India have been traditionally avoiding buying software. When it comes to content, most of the growth is through free or highly subsidised services," said Faisal Kawoosa, founder of techARC, while speaking to Mint about the growth of content services in the country.
According to Statista.com, the average revenue per user (ARPU) for music streaming in India amounts to $2.38. The industry is expected to reach a market volume of $227 million by 2023, at an annual CAGR of 1.6%.