Two of India’s leading streaming platform JioSaavn and Gaana have announced a massive cut in the pricing of their subscription plan. Previously, JioSaavn was available at Rs. 999/year, but now, one can get the same deal at Rs. 299. This amounts to a massive 75% cut in the pricing. The move is aimed at increasing the subscriber base by undercutting competitors. Gaana is offering its annual plan at Rs. 399, which one can avail at Rs 299 if paid through mobile wallet PayTM. While Spotify charges Rs. 1,189 for its yearly subscription, Apple Music and YouTube Music Premium are priced at Rs. 120/month and Rs. 99/month respectively.
JioSaavn and Gaana target the price-sensitive Indian music streaming market
The Indian music streaming market is buzzing with the launch of Spotify and YouTube Music. These platforms along with Apple Music, Prime Music and local players like Gaana, JioSaavn, Wynk, and Hungama have made the audio streaming market highly competitive.
With access to compatible multimedia capable devices i.e. smartphones, tablets, etc. and improved network bandwidths, a completely new generation of online music listeners have emerged in India. The number of online music listeners is expected to grow to 273 million by March 2020.
According to the FICCI report 2019, the continuous growth of digital infrastructure has paved the way for a 50% growth in audio streaming to 150 million listeners in 2018 (excluding YouTube). However, only 1-1.5 million listeners paid for music, generating INR 800 million in revenues. The same view has been corroborated by Amarjit Singh Batra, MD, Spotify India in a recent interview saying only 1% of the users in India pay for music streaming services.
To tap this underpenetrated market, JioSaavn and Gaana’s strategy might turn out to be a masterstroke. Especially in a price sensitive market like India.
JioSaavn’s new plan offers music lovers ad-free streaming with unlimited downloads for a year. The platform does not have any other short term plans, except the monthly plan which is priced at Rs 99.
This move by JioSaavn and Ganna is likely to spark off a price war among the music streaming platforms.