Spotify looks to expand its subscriber base with shorter affordable plans

Spotify has done a Hutch. Confused? Go back a decade or so when the late actor Irrfan Khan graced our screens for ‘Hutch ka chhota recharge’; Rs 10, Rs 20 and Rs 50 talktime plans for the price-sensitive user from the cellular network that is today know as VI.

It was in December 2020 when news broke that Spotify, a leading music streaming app, had introduced shorter and affordable subscription plans called ‘Premium Mini’. One could now choose between a Rs 7 daily plan, or a week-long plan for Rs 25.

The new affordable plans come with an ad-free experience and let you download up to 30 songs onto a mobile device. Also, Spotify offers three more subscription options: individual, duo and family. Spotify’s offerings change, as does the subscription price.

It’s interesting to see Spotify push users to pay for music. One would imagine why, considering the widespread prevalence of YouTube and its free offerings. Well, even Spotify’s rivals like Gaana and JioSaavn let you listen to music free of cost.

However, there is a cost you pay – ad-supported experience. Remember when you were listening to 'Sweet Child O' Mine' by Guns N' Roses and as soon as Slash was about to play his legendary guitar solo, an ad popped up… How infuriated were you?

On Spotify, you have to listen to ads before the next song plays; it’s a buzzkill. We remember how bored we got after listening to Jack Daniel’s ad again and again and again. With paid subscription, you can download songs onto your mobile and save data too.

That’s why YouTube has ‘YouTube Music Premium’, Gaana and JioSaavn have their paid offerings, and Spotify has its ‘Premium Mini’.

To communicate these offerings to the public, Spotify has released two spots conceptualised by What’s Your Problem (a Wondrlab company), a Mumbai-based integrated agency. Both ads tackle real-life relatable issues, and how the protagonists realise their daily Spotify subscription pack won’t suffice and (so) the weekly mini plan comes to their rescue.

Amit Akali, founder and CCO, What’s Your Problem, said, “In a value-conscious, price-sensitive market like India, encouraging the audience to pay for their music can be a challenge. To address this, our attempt was to focus on fresh and relatable situations.”

“For example, all of us, with two left feet and more, have stolen the show at ‘sangeet’ ceremonies. We all have gone out of our way to please our romantic interest in college days. The director, Vishwesh Krishnamoorthy of Corcoise Films, with his outstanding knack for performances and understanding of natural situations, did a great job.”

A Mint report on 15 December 2020 said streaming of audio in India grew nearly 40 per cent. The country remains an important market for Spotify. In its Q4 (October to December 2020) earnings report, Spotify said, “In Q4, we added 25 million MAUs and benefited from faster growth in India, the US and Western Europe, with India serving as a notable source of upside versus our forecast driven by successful marketing campaigns.”