While the first-mover advantage is often celebrated, Spotify took a different route in India, entering the market later and strategically leveraging the ‘late-mover advantage.’ By first capitalising on the existing momentum in the music industry and then shaping its own path to leadership, the platform turned timing into a strength, highlighted Amarjit Singh Batra, General Manager – SAMEA (South Asia, Middle East, Africa) and Managing Director – India at Spotify.
At the India Digital Summit (IDS) 2025, a panel discussion titled ‘5 Business Lessons From India’s Audio Streaming Industry’ featured Batra. Moderated by Vasundhara Mudgil, Head of PR and Communications – India at Spotify, the session explored the key lessons that shaped Spotify’s journey and success in the Indian market.
When asked about the key lesson for those entering a market late, whether as the fifth, tenth, or even fifteenth player, Batra shared that India’s internet landscape is booming, and having spent nearly 25 years in this space, he has had the opportunity to witness its evolution firsthand. Throughout his career, he has been part of various businesses and gained valuable insights, often benefiting from the first-mover advantage.
“At Spotify, however, we found ourselves in a different position. The company, originally founded in Sweden nearly 18-19 years ago, entered India relatively late- just under six years ago. By then, music streaming was already well established, and numerous players had carved out their space. The challenge for us was clear: How do we differentiate ourselves in a market where people already consume music in multiple ways?” Batra said.
He added, “This is where we learned an important lesson- just as there is a first-mover advantage, there is also a late-mover or last-mover advantage. This realisation became a critical part of our playbook. While India had been listening to music for decades, the streaming ecosystem was still in its early stages. Less than 100 million people were actively streaming, and many users were hopping between multiple platforms rather than committing to one. Clearly, the job wasn’t done yet.”
Batra mentioned that as they assessed the market, they noticed that there was little groundwork being laid to build a structured, long-term approach for the industry. Fortunately, Spotify is present across 180+ countries and has a global user base of over 650 million. India was their 79th market, and they leveraged their learnings from other regions to fine-tune their strategy. They examined what was working globally, identified gaps in the Indian market, and used these insights to deepen their research, refine their customer understanding, and sharpen their story.
“To truly succeed, we realised we needed to think beyond simply capturing market share, we had to build the category itself. Over the past 15-20 years, Spotify has played a crucial role in shaping the global music industry. Back in 2005-2006, music consumption was at a low point, and Spotify helped revive the industry by pioneering the freemium model, transitioning users from free to paid subscriptions,” Batra said.
“So rather than assuming the market was already established, we chose to start from scratch. This mindset allowed us to take bold steps- focusing on users who weren’t yet engaging with streaming, working closely with artists, and deeply understanding consumer behavior. This approach not only helped us learn from existing players’ mistakes but also gave us a broader, more strategic perspective. Instead of pursuing a narrow goal of simply winning market share, we committed to growing the industry as a whole,” he added.
Furthermore, Batra explained that one of the biggest challenges for any startup in India today is navigating the complexity of the market. There’s often an overwhelming push, both from within and from investors, to scale rapidly and capture the entire country. But India isn’t just one homogeneous market, it’s a vast and diverse landscape where brands have been operating for decades, deeply entrenched in local and regional nuances. FMCG companies, for instance, have spent 30-50 years understanding and adapting to regional preferences.
A brand that succeeds in one part of the country may not necessarily perform well in another. It’s far from easy to claim dominance across the entire market.
“When we started, our vision was clear- music is for everyone, and we wanted to bring Spotify to as many people as possible. But we also recognised early on that approaching India as a single entity wouldn’t work. The country is home to multiple languages, cultures, and musical traditions, each with its own identity. Catering to all of them at once wasn’t feasible. So, we made strategic choices right from the beginning. And in hindsight, that decision to focus on a few key languages has been one of our biggest strengths,” Batra said.
“Recognising the unique nature of regional markets, we didn’t just localise content- we built an entire strategy around it. One of our key moves was developing a dedicated approach for South India, something that most companies don’t consider early on. We set up teams in Chennai and Hyderabad, working closely with local artists, content creators, and marketers. This helped us gain a deeper understanding of the region and fine-tune our strategy accordingly,” he added.
Batra mentioned that this kind of regional focus isn’t easy. It requires difficult decisions, resource allocation, and a long-term commitment. Every company operates with limited resources, and choosing where to invest them is crucial.
“By prioritising specific regions and expanding step by step, we ensured that we weren’t stretching ourselves too thin. We’re playing the long game- not chasing quick wins, but building a sustainable presence. For anyone looking to build a business in India, the key takeaway is this: don’t fall into the trap of trying to conquer everything at once. Ambition is important, but a strategic, phased approach is what truly leads to success,” he added.
Batra also pointed out, “We don’t work solely for Spotify, we work for the entire music industry because we have a responsibility toward its overall growth. Our focus is on expanding the music industry globally, and India plays a crucial role in that vision. When we took charge here about six years ago, we knew it would be a long and challenging journey, primarily because Indians don’t traditionally pay for music.”
“I urge everyone, if you don’t already pay for music, please start doing so. Support artists by valuing their work, because cultivating this habit is essential for the culture we are building. As Indians, we take immense pride in our identity, and that should extend to supporting our own musicians. They deserve to be compensated for their art rather than having their music consumed for free,” he added.
When asked about designing marketing strategies for a sustainable business, Batra explained that when you’re clear about your goals, the next step is determining which market to target and understanding what marketing truly means.
“Many people equate marketing with pure advertising, but in my view, marketing is essentially a promise you make to your consumers about what your product will deliver. When they use the product or service, they should feel delighted, not deceived. That promise, as you mentioned, is the core of marketing. Over the past 5-6 years, we’ve been fortunate to run some incredible campaigns. However, since we were building from scratch in such a massive market and entering a bit late, we initially focused on growing our user base before branching into other activities,” Batra said.
“A key insight I’ve gained is that great branding isn’t necessarily driven by paid media. While paid media plays a role, the true power lies in word-of-mouth and customer advocacy. At Spotify, we believe that if we consistently delight our customers, they’ll naturally recommend us and bring others to the platform,” he added.
Furthermore, he went on to say that it’s essential to understand that their customers are not just the users of the platform, but also the artists they work with. Spotify views them as its customers too.
“Over the years, we’ve invested heavily in supporting artists in India, which has been a significant differentiator for us. While others have worked with artists, we’ve gone further by educating and guiding them to succeed in the streaming space. Through initiatives like masterclasses on succeeding on Spotify and providing the Spotify for Artists app, we’ve empowered artists with deep insights into their audience. They can track their fans’ listening habits, identify trends, and adjust their performances accordingly- whether it’s curating new tracks or planning live events,” Batra said.
“Our efforts to support the music industry extend to working with filmmakers to promote music in their movie releases. We’ve developed playbooks for these collaborations, creating a flywheel effect that benefits both the artists and the platform. This success is also due to our significant investment in time, money, and resources to ensure the growth of artists and the promotion of their music. Additionally, Spotify’s business model involves both premium subscriptions and ads. We offer free access with ads for non-paying users, and brands can reach these audiences through our platform. We work with around 600 brands, helping them connect with our user base, and they, too, are part of our customer ecosystem,” he added.
When asked about alternative approaches to business growth, particularly for those operating in highly competitive or commoditised industries, Batra stated, he believes in both, riding the wave and creating one. When things are going great, like the current AI boom, everyone is riding the wave. But on the other hand, creating a wave is far more challenging. Many people are building businesses or entire industries that don’t yet exist, and being the first to do so is no easy task.
On an individual level, we often hear the advice to work on our strengths because it’s easier to build on them rather than trying to turn weaknesses into strengths. The same applies to business- the fundamental question is whether to ride a wave or create one. And the answer depends on the situation.
“In our case, we initially chose to ride the wave. In India, the dominant force in music has always been film music. It’s deeply embedded in our culture- we grew up listening to iconic songs, playing Antakshari, and associating music with movies and stars. But historically, this focus on film music has acted as both a strength and a limitation. Despite having a rich musical heritage spanning thousands of years, India has seen only a handful of artists break through because the industry has largely funneled talent into film soundtracks. With around 2,000 films a year and fewer songs per film than ever before, the opportunity for independent artists to rise has been limited,” Batra said.
“When we entered the market, we recognised that India was unlike any other music industry globally. In most parts of the world, the music scene is artist-driven, with millions of independent musicians and an endless catalog of songs. That was not the case in India. So we decided to take a dual approach- riding the existing wave of film music while simultaneously working to create a new wave- an industry where artists, not just film soundtracks, lead the way,” he added.
Spotify has been at the forefront of this change, helping redefine what Indian music can be. A great example of this is “iPop”- a term they introduced. Globally, there’s K-pop, J-pop, and Latin pop, but in India, ‘I-pop’ was always synonymous with Bollywood. We wanted to change that. I-pop should mean non-film, independent music. That’s why they created playlists like I-pop Icons, which showcase the future of Indian music.
“Right now, India is experiencing a music boom, much like the startup revolution where everyone wants to be an entrepreneur. Today, every young artist wants to be a star. And that’s the journey we’re on- building a movement, not just following trends. Because if you truly want to make an impact, you have to think long-term and create the wave,” Batra stated.
