Spotify tweaks paid plans into three buckets months after a hike
Swedish audio streaming platform Spotify has tweaked its paid offering, introducing a three-tiered subscription even as platforms struggle to convert free users to paying subscribers and the music industry’s digital revenue has contracted.
Spotify introduced a Premium Lite plan for ₹139 a month, offering an affordable, ad-free experience, while its ₹199 Premium Standard plan also includes access to tracks, playlists, and podcasts, according to the company’s statement. The Spotify Premium Platinum, in addition to the features available in the other two plans, includes AI DJ, AI playlist or third-party DJ integration and mixing tools, along with two additional household seats, for ₹299 per month.
Until now, the platform offered ad-free plans for individuals ( ₹139), students ( ₹69), Duo ( ₹179) and Family ( ₹229). Earlier this year, the streaming service raised the prices by 28% across plans in a first such hike since its 2019 India debut.
“We are evolving our Premium subscription portfolio from the one-size-fits-all model to reflect the diverse ways people listen to music in India,” Amarjit Singh Batra, general manager, South Asia, Middle East and Africa and managing director, Spotify India, said in the statement. “Every listener is different, so we’re offering more choice, flexibility, and control from Lite to Platinum, ensuring everyone can experience Spotify in a way that fits their lifestyle and deepens their connection to the music and creators they love.”
Spotify’s portfolio tweak is an attempt to grow subscription revenue even as film producers, independent artistes and music labels are grappling with the shutdown of multiple streaming platforms in India, including Airtel’s Wynk, ByteDance’s Resso and Hungama Music.
The Indian music segment declined by 2% to ₹5,300 crore in 2024, according to the annual Ficci EY media and entertainment report. Digital revenue, the biggest contributor, fell from 68% of total revenue in 2023 to 62.4% last year. Per-stream rates earned in 2024 by some labels declined, the report said, and the push to convert free to paid subscribers impacted growth in music monetization.
While there isn’t a single tool to stem this decline, music industry experts say users in India need to be educated to start paying for music.
According to the Ficci EY report, the Indian music industry recorded 192 million free streamers in 2024 compared with 12 million paid streamers, forcing the platforms to heavily depend on advertising revenue.
“The current licensing economics of providing free music in the ad-supported tier and the reality of advertising monetization doesn’t stack-up,” a JioSaavn spokesperson said. “The fixed cost for music, which is independent of ad revenue, in the long run is unviable. In order to make the model viable, we need to collectively grow the base of paying subscribers to have viable unit economics.”
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