Why India should note Spotify’s announcements today

• Spotify now has a data saver mode.
  
• And a revamped free tier.
  
• Today’s announcements are a solid indicator towards Spotify’s future.
  
  

In its first big announcement since the IPO, music streaming service Spotify made some interesting revelations. The company, which has apparently been looking to enter India soon made two announcements that Indians should note.

Better free tier

Perhaps the biggest announcement Spotify made was about how its free tier will work. The service will now offer 15 free playlists to listeners, with about 750 songs constituting over 40 hours of playback. Users will be free to skip, shuffle or play single tracks. Earlier, Spotify offered an ad-driven free service where users couldn't skip or replay songs.

This is aimed at convincing more users to pay for the service, while retaining existing free subscribers. The freemium model is important to Spotify’s business and its fight against Apple Music, which is only available to paid subscribers. It allows the company to present a higher user base, even if all of them aren't paid customers.

This tier will make all the more sense when the company enters India. Consumers here have historically been reluctant to pay for services. In addition, the Indian market already has ad driven services like Gaana and Saavn that offer music streaming for free.

Its new free tier could give enough exposure to the app for Indians to recognise Spotify’s superior technology.

Data saver

Unlike its current markets, India is a slow data market. Spotify announced a data saver mode, which allows users to stream on slower networks, while also saving data.

This is likely a move made in anticipation of markets like India. The data saver mode was introduced by Netflix after it entered India, while most other streaming apps also allow the same. It has been proven to be an essential feature for this market.

While Spotify hasn't yet confirmed when it plans to enter India. These two announcements could be considered a solid indication towards the company’s future plans.