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If streaming services like Spotify want to succeed in new markets, they must align with high customer expectations for podcasts, provide well-chosen playlists that align with local preferences, and create content that respects regional customs, languages, and tastes.
It's also critical to adjust pricing strategy for target markets: After years of relying on illegal music-sharing websites, torrenting, or P2P techniques like Bluetooth to listen to music that is too costly to buy, there is a lot of pricing pressure in these marketplaces.
Let's examine how Spotify addressed the dual issues of adjusting for local musical tastes and pricing pressure when it first arrived in India!
The more users you target, the higher your chances of converting them. That's why Spotify decided to offer free service trials to India's 820 million active internet users.
The freemium business model was a calculated reaction to the great price sensitivity of Indian consumers.
The step-up from freemium to paid was all about eliminating annoying restrictions:
Spotify made the successful bet that freemium would get people started but that, eventually, they would be willing to pay for the above.
Spotify’s premium plan in India in 2024
They offered reasonably priced daily, weekly, and monthly subscription choices to facilitate the shift from free to paid. Additionally, they provided first-time customers with lower rates and took advantage of India's enormous student population by offering substantial student discounts.
Spotify then eliminated payment restrictions by including well-known regional payment methods like UPI, Paytm, Google Pay, and NetBanking after realizing that credit cards were not widely used in India.
Spotify worked closely with regional scholars and cultural specialists before introducing the platform in India to make it appealing to and appropriate for the Indian population. The time and budget spent here were a huge factor in their success.
Let's examine the various components of the localization puzzle that Spotify carefully assembled.
Broad language support
Spotify's mobile app supports Hindi, Gujarati, Bhojpuri, Kannada, Malayalam, Marathi, Odia, Punjabi, Tamil, Telugu, Urdu, and Bengali, engaging with India's multicultural populace.
Localized marketing
Bollywood stars and other local celebrities appeared in the platform's initial local advertising efforts. For instance, Spotify promoted Spotify Premium in South India through a regional campaign that included a Telugu and Tamil TV ad featuring well-known actor Nagarjuna.
During significant Indian holidays like Diwali, Holi, and Eid, Spotify also ran unique marketing initiatives. The platform sponsored targeted advertisements and produced carefully selected playlists of seasonal music ("Daily Diwali," "Diwali Party Hits") to remind users of the joy of music during these festive occasions.
They even added a little shine to their "Now Playing" screen for Diwali 2022! ✨
Source: Spotify
Adapted Product
India has many different languages and musical genres. In addition to Bollywood and popular Hindi music, Spotify also includes regional music in languages like Tamil, Telugu, Punjabi, Bengali, Malayalam, and Marathi, thereby localizing its music selection. Folk, religious, and classical Indian music are also featured on the portal.
Additionally, Spotify debuted hyper-localized playlists for various moods, such as "Romantic Punjabi" and "Chill Tamil."
Spotify’s “00s Chill Tamil” Playlist
Finally, Spotify invested in creating and curating podcasts specifically for the Indian audience after realizing their growing popularity in that country. This includes regional language podcasts about subjects of local interest like dating, technology, Bollywood, cricket (a national obsession), and more.
Spotify’s Podcasts of the Week
With a strong cultural foundation, the platform's social media marketing approach seeks to connect with Indian users genuinely. The platform, which promotes local artists and features music in many Indian languages, combines well-known voices and faces that strengthen cultural ties. To ensure relevance and relatability, it also modifies well-known global social media trends to represent local quirks.
As people interact with content that feels specific to their cultural identity, this strategy draws attention and promotes active audience involvement. The Top Song India feature is an excellent illustration of this, as the quantity of shares frequently equals the number of likes, indicating a high degree of interaction and community-driven distribution. This tool acts as a bridge by enabling users to discuss their musical preferences and find popular songs within their cultural setting.
To further improve user interaction and foster a lively online community, the platform incorporates regionally appropriate hashtags, themes, images, and music that speaks to local tastes. As a result, consumers feel heard and visible on the platform, which increases engagement and fosters long-term growth and brand loyalty.
The platform creates a powerful, impactful presence in the Indian market by integrating social media marketing with local culture, establishing a new benchmark for culturally sensitive digital marketing.
By emphasizing the nation's rich and varied culture and offering pricing that entices people to try the platform, Spotify India draws in an audience and keeps its interest.
Spotify India Instagram
Spotify’s Top Song India
Spotify's successful entry into the Indian market demonstrates how crucial it is for international companies to incorporate local culture into their market entry plans. Spotify recognized the difficulty in a nation as diverse as India and is now reaping the rewards of a devoted, active listener and brand-follower base nationwide.
The Global Head of Markets at Spotify, Cecilia Qvist, stated:
"Regarding our broader global expansion strategy, Spotify's entry into India is a significant advancement. Maintaining ties to global culture while allowing for local adaptation is a key component of that strategy, and we have undoubtedly succeeded in doing so with our India launch.
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