One of the most popular American music streaming services, Spotify relentlessly continues its expansion to Asia. The Asian market is one of the most profitable due to their permanent technological progress and the number of people interested in new services. As the latest achievement, Spotify was launched in Thailand.
There are some disputes among the US and UK users of Spotify premium, as the monthly fee for the service in Asia is only a bit over $4, comparing to the $9,99 and £9,99. Converting to Thai baht (Thailand currency), the users will have to pay only 129 THB to get high-quality legally distributed music. Spotify Premium, by the way, has more than 60 million users who pay monthly fees for their subscriptions.
Axplaining the price choice, the officials said that the $4 or so fee is about the same all over the region. Also, they aim at the local pricing when arranging the fees, so the decision was considered thoroughly, including many factors.
To get more attention and provide their subscribers with more opportunities, Spotify is getting ready to introduce weekly and daily packages. This will improve their chances for success in Thailand, even though there’s a 20% fall in online music revenue since 2012. This was reported by the head of the Spotify Asian division Sunita Kaur.
The launch of the company’s services in Thailand was planned since May, and it should open about 61 markets all over the world to the service. Alongside their plan to increase the presence on the Asian market, the potential is great.
The first several spots of market penetration by the service were Hong Kong, Malaysia, and Singapore. After that, their plans on the Asian expansion were put on hold, and only last year they also launched in Indonesia. This was a smart move, considering that Indonesia is the largest economy throughout the Southeastern Asia. Spotify have also launched in Japan about the same time, which was also a good shot, thinking of the fact that they have the second world’s most profitable music market.
The current Thailand launch opens doors to seven more Asian countries. As to the future plans of the company, they say Vietnam is the next target. Another potential goal and a great challenge for the service might become India. The company considers the future launch there seriously, but no official claims were made as of today.
Such an active progress into the Asian market will provide a solid ground for the company, especially when it goes public. Besides, they want to do it by the means of a direct listing, which is an unusual way to go public, as there’s no IPO (initial public offering) involved. Also, the company is constantly under pressure of Apple Music that is available worldwide. However, while Spotify has 60 million subscribers, Apple Music has only 27 million.