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1-min read

This is The Reason Why You Need to Wait For a While Before Spotify Releases in India

According to a report by Financial Times, three American labels namely Warner, Sony, and Universal are holding up Spotify’s India launch as the streaming service is starting to license music directly from the artists themselves.

News18.com

Updated:July 31, 2018, 2:18 PM IST
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Spotify Is Testing a New Two-Person Subscription Plan
Spotify Is Testing a New Two-Person Subscription Plan REUTERS/Christian Hartmann/File Photo

Remember Googling about when would Spotify finally come to India so that you could stop using that 'crack version' of the app that you downloaded to stream some really good indie-pop music? Well, there is some bad news for you. Spotify’s rumoured summer launch may not happen anytime soon after all.

Spotify India is headed by ex-OLX CEO Amarjit Singh Batra. The streaming service reportedly has an office in India and has hired a number of employees there. There have been rumours that Spotify planned to have launch over the summer this year. But that may not be happening.

The streaming service already faces competition from more than five other established streaming services like Saavn, Gaana, Airtel’s Wynk, Hungama Music, and Apple Music.

However, according to a report by Financial Times, three American labels namely Warner, Sony, and Universal are holding up Spotify’s India launch as the streaming service is starting to license music directly from the artists themselves.

In direct retaliation to Spotify’s move, these labels, which also account for the majority of music available in the US and pretty much everywhere else, are not providing Spotify the required territorial license to their music for India. And as music licenses are sold by territory (fun fact), Spotify isn’t allowed to launch in India until these labels give their blessings. Oh well.

Spotify’s direct licensing deals, earlier reported by Billboard, are non-exclusive in nature, which in layman terms implies that other streaming services too can approach musicians for similar deals.

However, with Spotify reportedly paying the musicians' hundreds of thousands of dollars, the big labels are now very worried as direct licensing completely cuts out the labels from the process.

This is a big reason why Spotify and other streaming services do not have exclusive content.

It is safe to say that stalling Spotify’s India release is the labels’ way of forcing the streaming service fall back in line.

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