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Home , Arijit Singh, Google Video, Guru (soundtrack), Guru Randhawa, Indian Idol, JioSaavn

thereport ISSUE 423 | 23 MAY 2019

YouTube’s opportunity Why the world’s biggest streaming service is riding high in the industry’s next key growth market 1

ISSUE 423 23.05.19 YOUTUBE INDIA

just views). In fact, it will soon be the first channel to reach 100m subscribers on the platform. Meanwhile, as music:)ally writes this introduction, two of the top three artists on YouTube globally, according to the service’s charts, are Indian: and . In the week of Ed Sheeran’s re-emergence with a duet, his 141m weekly views lagged behind Yagnik’s 180m and Kakkar’s 171m. Two more Indian artists, Sanu and , were inside the top 10 of this chart too. All this is the backdrop to YouTube’s announcement that it has 265m active users in India, while its recently launched India is the fastest- YouTube Music app zipped to 15m growing market downloads within a few weeks of launch. for ’s In one of the most eagerly watched ‘high- potential’ markets for recorded music, service, with YouTube is already the biggest player, music to the fore despite intensifying competition among audio streaming services. The two main figures we have from YouTube are the 265m active users (for the overall platform) and 15m downloads (for the YouTube Music YouTube’s India opportunity app). But some recent industry studies have provided more insight into e can date music:)ally’s interest T-Series was the 15th biggest channel that diaspora elsewhere) made its status in India. in YouTube, India and music month with 226.7m views. waves globally. A report published back to a story we wrote for our Over the following months we tracked Fast forward to May in March 2019 by the bulletin on 1st May 2015. its rise – and by October 2016 T-Series 2019 and T-Series has Federation of Indian WThe focus was on Taylor Swift’s status was the most popular YouTube channel by just become the most Chambers of

report as the most popular musician channel on views (712.7m that month). It was one of popular YouTube Commerce and YouTube in March that year, but in passing the first times that the demand for music channel for Industry we noted that Indian music company by people in India (and the Indian subscribers (not (FICCI) and the Neha Kakkar 2

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EY (pictured right) explored India’s by the IFPI’s reckoning. That’s thus a interviewed YouTube’s Pawan Agarwal wider media and entertainment smaller percentage for video of labels’ and Lyor Cohen to get their perspectives; sector, music included. revenues than is suggested by the FICCI profiled the five biggest Indian stars on One of its claims was that while report. YouTube globally; looked at T-Series’ around 150m people in India used Another report published in February recent dethroning of PewDiePie at the top audio streaming music apps in 2018 2019 by Indian industry body IMI with of the YouTube pile; and recapped what “around 250m people watched music Deloitte (pictured below right) explored the key local audio streaming services are on YouTube”. other topics, including the potential up to. That would be a huge percentage provided by the Indian diaspora. Plus, if you missed it earlier in the of YouTube’s overall user-base in “The Indian diaspora in the United month, we’ve included journalist Amit India. YouTube is also listed as the States and represents a major Gurbaxani’s piece for us on ’s most popular way 18-34-year-old opportunity for growth of the Indian launch in India and how that streaming consumers in India discover music, recorded music industry. With the service stands in competition with ahead of Facebook and Instagram. advent of audio OTT platforms, rising YouTube and others. :) The report also claimed that global reach of and digital accounted for 83% of labels’ traditional music streaming revenues in India in 2018, and that services, Indian music “YouTube accounted for 40% of the today has a far wider reach digital revenues for labels” – which compared to a few years ago,” suggests that YouTube was a third of it claimed, suggesting that the their revenues overall. diaspora is nearly 5m people in This highlights one of the North America alone. tensions around YouTube in India: Audio streaming services it’s a significant revenue generator like JioSaavn and Gaana , but might its popularity have are targeting these overseas a negative impact on efforts by listeners, while Spotify’s the audio streaming services to launch of its Desi Hub last convert free listeners into paying year also attempted to serve subscribers? biggest reach among Indian internet global listeners with Indian “Only 1-1.5 million listeners paid for users, with penetration of 93% – ahead music, ahead of its launch in the music,” claimed the report, citing “the of Facebook (89%), WhatsApp (82%) and country. wide availability of music on services Instagram (69%). But YouTube may be the such as YouTube” as well as piracy as Indian label sources also point to the platform best positioned to presenting “considerable challenges in IFPI’s recent Global Music Report, which capitalise on the Indian diaspora, persuading users to pay for the benefits of claimed that the trade value for video particularly for film music, where streaming”. It cites a statistic from an IFPI- streams of music in India in 2018 was the video is a crucial part of the commissioned report suggesting that “52% $28.3m, up from $24.8m the previous experience. of survey respondents didn’t pay for music year, and just $4.6m the year before that. In any case, there is plenty to

report as they felt YouTube met all their needs”. This would peg video revenues at unpack about what’s happening The report also claimed that YouTube around 21.4% of the overall recorded with YouTube and music in India. was the social media platform with the music market in India – some $132.3m In this music:)ally report, we’ve: the 3

ISSUE 423 23.05.19 YOUTUBE INDIA ‘2019 will be the year of

Alka Yagnik Indian music’ YouTube’s Pawan Agarwal talks YouTube’s rapid growth in India and what it means for music

The YouTube journey in India is incredibly inspiring and deeply rooted in India’s internet growth story – Pawan Agarwal, YouTube

ndia is YouTube’s fastest-growing market, crossed the million-subscribers mark for “We have also invested in building value of music and the literal value that with 265m users as of April 2019, which their channels – up from just two creators a vibrant creator community and deep people are willing to pay. Technology and means the service is reaching more than five years ago. partnerships across the content industry – new business models have completely 20% of the population there. music:)ally talked to Pawan Agarwal, ranging from the Indian film industry, cable changed the established distribution “India is now both our biggest audience YouTube’s head of music content and satellite broadcasters, across the length channels that have long served the and one of our fastest-growing audiences in partnerships for India and south Asia, to find and breadth of the country.” recorded music industry,” he says. the world,” said CEO as the out more about what’s happening in India, A recent study published by the Federation “We made an enormous investment to milestone was announced. She added that and what it means for music. of Indian Chambers of Commerce and launch YouTube Music, a music product in the past year, YouTube consumption on “The YouTube journey in India Industry suggested that YouTube generates based on YouTube’s amazing breadth mobile in India grew by 85%, while 60% of is incredibly inspiring and deeply around 40% of labels’ digital revenues in and depth of catalogue. We believe in a its view time was coming from outside the rooted in India’s internet growth story; India. Agarwal sees that as reflecting longer- twin-engine growth story – advertising

report country’s six largest metro areas. improved access and low-cost data have term trends in the country. and subscription. We are therefore staying Wojcicki also revealed that more than turbocharged the growth of YouTube in “Over the last two decades we have laser-focused to deliver reach and revenue 1,200 YouTube creators in India have India,” he says. seen dramatic shifts, both in the inherent for the artist community.” the 4

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YouTube Music launched in India in which consolidates an artist’s presence March, alongside its sister subscription- on YouTube; the launch of YouTube charts tiered YouTube Premium. The YouTube in more than 45 countries around the Music app was downloaded 3m times in world; and expanding credits to artists and its first week, and by the end of April had for recorded music in YouTube reached 15m downloads. videos. Indian artists are also getting the India has been a tough market, thus far, familiar guidance on using YouTube’s for subscription music. Agarwal says that creator tools. YouTube does see potential in persuading “YouTube is also the only platform where people to pay, with the free tier of YouTube artists can have both social and commerce Music functioning partly as a funnel. footprint. With social features like stories, “The streaming market is multi-segment. community posts, premieres and live There are users who want an accessible, streams, YouTube enables direct-to-fan ad-supported experience. There is also a engagement on the same platform where segment of users who are willing to pay fans consume music,” he adds. for premium features such as background YouTube has also been running events listening, more downloads and an ad-free and creating digital brands with musicians in experience,” is how he puts it. focuses on building wonderful platforms years. How does YouTube’s Agarwal feel India. One example is Jammin’ (left) – a web “We’ve built a beautiful subscription for music fans and helping Indian artists about those kinds of predictions? series that paired local YouTuber musicians service on top of our thriving ads business and labels reach even more users,” he says, “India is one of our fastest-growing with top Bollywood composers to create and will grow both. We want to address diplomatically. markets globally and we’re excited to see original tracks. the needs of music fans and have tiered “We’re very proud of the fact that future growth in online streaming in India. Agarwal also cites OnePlus Playback: “A offerings with YouTube Music: users can YouTube is a global platform with over 2bn We also see here in India more and more collection of 10 original music videos, five access the free, ad-supported version of logged-in users every month. Indian talent people using video for entertainment and cover videos, four videos and four the service; or opt-in to the YouTube Music can now reach an engaged and passionate learning,” he says. “By 2020, it’s expected official remixes starring top artists like Premium subscription starting at 99 rupees community of music lovers from all corners that 500m internet users will consume Randhawa (below), [$1.40] a month.” of the world.” online video. The momentum and potential and Neha Kakkar along with top YouTube He continues, ”We are committed to He adds, ”Now with YouTube Music, we is vast.” creators in music and dance.” driving value to the music industry through want this global but very local product to In the shorter term, a twin-engine strategy – AVoD [advertising help make it easier for artists, songwriters YouTube is developing video on-demand] and SVoD [subscription and labels to grow their audience – not just features and promotional video on-demand].” in India but throughout the world.” support for Indian artists, YouTube as a whole already has more Agarwal cited the 15m downloads of the beyond merely providing a active users than Indian audio streaming YouTube Music app as evidence of a strong platform for them to upload services JioSaavn and Gaana put together, start. “We’re very excited about the growth their music and run their even with their recent announcements prospect of our subscription business in own channels. These aren’t of 100m active-user milestones. Agarwal this market and believe we can add value to India-specific: instead they declines to put the boot in, however. the local music industry.”He’s also looking reflect recent additions for

report “We don’t believe it’s a zero sum game ahead. Gaana’s CEO recently suggested YouTube globally. and don’t see them as competition; they’re that as many as 600m people in India could Agarwal cites: the Official our ‘comrades in arms’ whose mission also be streaming music within the next three Artist Channel feature, the 5

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Guru Randhawa’s single ‘Ishare Tere’ Indian movie soundtracks – visually rich, has reached more than 345m views since choreographically colourful and sonically its release (by T-Series) in July 2018. “This captivating. Movie soundtracks still continue completely goes on to show the reach and to drive large volumes of consumption. popularity of artists on YouTube and how What is exciting is that regional language brands are leveraging this phenomenal consumption is growing.” reach,” says Agarwal. However, for YouTube in India, music isn’t Another example of YouTube’s musical just about the big film tracks, as Agarwal activities in India is YouTube FanFest, where makes clear. artists including Sanam, Shirley Setia, Neha “We also see an increase in non-movie Kakkar, , Divine, Vidya Vox, Ritu music from independent artists and creators. Agarwal and Naezy have performed in front Labels and artists are using YouTube to of hundreds of thousands of fans. distribute music and engage with their fans There’s also YouTube’s first ‘original’ with non-movie music,” he says. “At times series in India, ARRived, which Agarwal the engagement for this type describes as “an authentic search for the of music is even higher than best music talent in India with music icon what you would see with a A R Rahman”. It was made available on mainstream movie soundtrack.” YouTube last year. funded promotional campaigns for new That plays in to his overall This is all part of what Agarwal sees as a albums,” says Agarwal. optimism about what’s need for a properly localised experience in “In the past month, YouTube has hosted happening for Indian artists in India – a strategy mirrored by all the global live streams of the Coachella music festival the digital realm, as the market services there. and premiered a new video from Taylor there adapts to new distribution “It is very important for music services Swift. We would love to expand some of platforms, and a relaxing of to offer a localised experience in India. these initiatives to India in the future.” the firm grip on the market The diversity and depth of content across For now, Indian artists are making their previously held by film music multiple languages is a reflection of our presence known on YouTube globally and the companies that release efforts and investments in India,” he says. through its charts, as well as through it. “Our audience is engaging with this viewing by people of Indian origin across “The diversity and global content – not just in big cities but in rural the world. appeal of Indian music are India as well. Creators, artists and users are “It is amazing to watch Indian artists flex Top Artists chart were all Indian – Neha growing faster than ever. I’m truly excited making and consuming content in Tamil, their creative muscles around the world. Kakkar, Alka Yagnik and . about the future of this market,” says Telugu, Bengali, Punjabi, Gujarati and more YouTube is making the world smaller, where Week-to-week in 2019, an average one-fifth Agarwal, who sees YouTube (and video) local languages.” fans can have easy access to artists from of the entries on the Global Top Songs chart playing a key role in this. In the future, YouTube may bring some wherever they live,” says Agarwal. “A year featured Indian artists. The momentum “Music in India has always been of its global marketing initiatives to India, ago, no videos featuring Indian artists had is just getting started in India and I think about so much more than just the audio. although it’s not happening yet. reached 500m views. Yet today eight videos 2019 will be the year of Indian music, where Fans love watching music videos – with “Globally, we have been trying out new have hit that mark, with more set to cross Indian artists will shine on the global stage. their vibrancy, choreography, stars and

report video initiatives to draw in more customers over in the next few months.” Historically, music in India is closely tied glamour. That’s why we built YouTube – including short-form video series He continues, ”In the first week of March to the movie industry. YouTube offers a Music to bring all this together in a unique, featuring acts such as Billie Eilish – and alone, the top three artists on the Global great platform that captures the beauty of personalised experience.” :) the 6 They’re household names in India, but they’re also taking YouTube’s global charts by storm

ISSUE 423 23.05.19 YOUTUBE INDIA India’s big hi!ers on YouTube

rake, , Ed Sheer- an... The most popular artists on Spotify’s global artists chart have tended to be North DAmerican or European, which is why it was such a big moment when Latin American star J Balvin topped those rankings for a while in June 2018. On YouTube, though, right from the launch of its global artists chart In the 12 months to mid-May 2019, Indian musicians have made a strong his music generated 6.42bn views on showing. Alka Yagnik, Neha Kakkar, YouTube. The most popular track was Kumar Sanu, Udit Narayan and Arijit ‘Cheez Badi’ with 315m views in that time Singh have been regular fixtures in and period – it was a duet with Neha Kakkar. around the top 10.

NEHA KAKKAR

Born in the city of in the state of in 1988, Kakkar first came to prominence as a contestant on TV talent show Indian in 2006. She has since recorded tracks for a steady stream of movies. ALKA YAGNIK In the 12 months to mid-May 2019, Kakkar’s music generated 8.23bn views Born in in in 1966, on YouTube. Her most popular track was In the 12 months to mid-May 2019, Yagnik is one of the most famous Indian ‘Dilbar’ from the film , with 1.31bn Sanu’s music generated 6.31bn views ‘playback’ singers – meaning she records views. on YouTube. His most popular track was Finally, Arijit Singh is one of the younger songs for films, which actors then lip-sync ‘Aankh Marey’ from the film , with generation of playback singers, born in to. She’s been recording since 1980, and KUMAR SANU 1.27bn views. Jiaganj Azimganj in West Bengal in 1987. her songs appear in more than 1,100 films. He also broke through in TV show Fame In the 12 months to mid-May 2019, Like Yagnik, Sanu was born in Kolkata, UDIT NARAYAN Gurukul in 2005. Yagnik’s music generated 8.54bn views West Bengal, in 1955. He’s a veteran In the 12 months to mid-May 2019, on YouTube, with her most popular track playback singer, whose first Bollywood Born in Baisi in the state of Bihar in Singh’s music generated 4.88bn views on

report being ‘Dil Ne Yeh Kaha Hai Dil Se’ from song was recorded in 1989. He’s also a 1955, Narayan is another well-respected YouTube. His most popular track was ‘Tera the film , with 211m views over world record holder, having once recorded playback singer with a lengthy back ’ from the film ‘Genius’, with 377m that time. 28 songs in a day. catalogue of music used for films in India. views in that period. :) the 7

ISSUE 423 23.05.19 YOUTUBE INDIA YouTube Music’s global head Lyor Cohen sees India as a fascinating market ‘In India music is seen and not simply heard’

yor Cohen may be based in the MOST OF THE USERS THERE US, but he’s well aware of what’s WILL ACCESS THE FREE VER- happening in India with YouTube, SION OF YOUTUBE. WHAT IS THE music, and now YouTube Music. UPSELL STRATEGY FROM FREE LHe talked to music:)ally about how he sees the country. TO PAID ON YOUTUBE MUSIC? We don’t talk about ‘free’ because people WHAT IS THE REAL POTENTIAL are paying with their eyeballs. To me OF MUSIC IN INDIA? there is no question that the key to being successful in India is the two-engine Just like if you were to cut a British person strategy of ad-supported and subscription. open, they would bleed music – or if you India is a very important market for cut a French person open, they would Google and YouTube. It is great that we bleed cinema – Indians bleed music and now have this new subscription product. cinema together in a very strange way. But our job is to push on all fronts of Someone recently told me that in India monetisation – [with] things like ticketing, music is seen and not simply heard. This merchandise, stickers, memberships isn’t a Bollywood phenomenon. This is that labels and artists can access 1,000-year-old phenomenon in India. CAN THE MUSIC INDUSTRY industry driven by Bollywood, you are direct-to-consumer, advertising and, of Music intertwined with acting has been BECOME AN ENTITY IN ITS starting to see tremendous growth in the course, subscription. As the middle-class part of Indian culture for over 1,000 years. OWN RIGHT IN INDIA, RATHER independent sector. emerges, it becomes a bigger opportunity. I thought that was fascinating. THAN AN ANCILLARY PART We also believe in direct-to-consumer All eyes are on China and its emerging and that is one of our very important OF THE FILM BUSINESS? INDIA IS YOUTUBE’S middle class; but to witness the FASTEST GROWING contributions to the labels and the artists enthusiasm in India about the economic The independent sector – the non- MARKET. WHY IS THAT? where they can layer in memberships growth of the country is phenomenal. Bollywood-affiliated releases – is growing as well as things like merchandise and and artists are now able to write and sing It is smartphone connectivity for one. Also, ticketing. This is alternative monetisation. WHAT ARE THE their own songs independent of Bollywood as I said, Indians see music and don’t We are pushing on all revenue sources CHALLENGES IN INDIA? films. People are not talking about this in simply hear it. What better platform to do with the industry. disrespectful terms; they are talking about it through than YouTube? YouTube is also There are multiple challenges here. it in terms of opportunity. one of the most adored brands in India. SPOTIFY HAS SIGNED UP One of those challenges is that many of Artists are now aware they can write They love YouTube. People in India travel 2M USERS IN INDIA SINCE the artists want to sing what they call Bollywood songs and they can also write great lengths, so having their smartphone ITS LAUNCH, BUT YOUTUBE “independent music”. That does not mean their own songs that are not associated with them and being able to access MUSIC HAS 15M DOWNLOADS. report a non-major. When they reference an with the movies. There is a lot of media on YouTube makes those long and “independent record” they mean one that enthusiasm internally for that. arduous journeys more bearable. Plus WHAT’S DIFFERENT? is not associated with Bollywood. At the moment, [even] with an mobile data charges are very low in India. First of all, YouTube has been in the the 8

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market in India for 11 years. There is a real WHAT EXTRA SUPPORT IN love affair between the Indian consumer MARKETING AND PROMOTION and YouTube. This is not a new platform. CAN YOU OFFER INDIAN ACTS? We have a well-liked brand that the consumer has a real affinity with. YouTube is committed to co-investing with the labels and helping them to find HOW WILL LOCALISATION and grow their audiences. We have WORK ON YOUTUBE MUSIC? built an artist relations team and a label relations team. We have centralised to We have built a global product that is the point that even Google’s marketing truly local – so that includes multiple is collaborating with us. There is much languages. India is bigger than Europe more higher coordination and investment in terms of landmass, it has more in helping artists and labels develop their languages than Europe and it has a bigger audiences and grow their audiences. population than Europe. Our product, although global, is very local. HOW DID YOU SIDESTEP We are excited about the 3.0 and 4.0 THE LICENSING PROBLEMS versions of streaming where local cultures THAT SPOTIFY HAS can thrive and where music can thrive and not be hit by the wave of Western EXPERIENCED IN INDIA? music; where it is allowed to breathe, to I would simply say that we work real hard stand on its own and to develop on its in explaining the opportunities. Even own. though it is not new to the industry, old By making the world a little bit smaller, habits die hard. maybe the diaspora of the country can We take our time with partners and also enjoy the music; but equally the explain to them – not just with hand-wavy music can actually be enjoyed by people information but with real data about the other than . If the music is opportunities of working with us – the good enough, it will find its home. That is reach that the platform has and how we a wonderful and a beautiful thing for us to are pushing all the levers in monetisation. be a part of. Our approach is a marathon, not a sprint. We take our time. We don’t just WHAT CAN YOUTUBE OFFER show up, announce we are going to launch INDIAN ARTISTS TO HELP EX- how the platform works. that other platforms may not have – and then say that we need licences. PORT THEM OUTSIDE OF INDIA? They understand how the algorithm because of video, global reach and so We have been in the market for quite works. 80% of all watch time is done by an on. Anybody who has spent enough time some time. We take our time with them. The reason why Korean artists and internal recommendation engine. There understanding it is probably going to We try and show them data and the Latin artists have had such an impact are ways of affecting that the Korean and have an advantage. It is not an advantage opportunities and then it is on them

report globally is because they are world-class the Latin artists have figured out in how to that shuts out other people but it does whether or not they seize the opportunity users of YouTube. I like to say they are use the platform here. require some focus and some effort to or sit on the sidelines and watch the PhDs on the platform. They understand Our platform has a level of complexity understand it. market develop. :) the 9

ISSUE 423 23.05.19 YOUTUBE INDIA T-Series takes top spot YouTube’s biggest channel in terms of subscribers is a film music powerhouse

or years, the most-subscribed-to Kumar told Quartz India in May. channel on YouTube was the one “With these developments, T-Series belonging to Swedish gamer Felix gets promoted. What is heartening is Arvid Ulf Kjellberg, aka PewDiePie. that now we are seeing growth even in FYet in 2018 his position came under threat countries where people were not watching from the channel of Indian music company our channel earlier.” T-Series. YouTube’s importance to T-Series Cue a long and very public battle in can be seen in Kumar’s claim that online which PewDiePie encouraged his fans in platforms (i.e. not TV or radio) generate their campaign to keep him on top spot between 60% and 70% of the company’s – a campaign that had a number of low revenue, handled by a team of 20 people. points, notably a diss track called ‘Bitch T-Series also distributes its music Lasagne’ recorded by Kjellberg telling through audio streaming platforms, T-Series that “your language sounds like it of course: its deal with Spotify was a came from a mumble rap community”. significant announcement in the run-up to T-Series actually won a court order that service’s launch in India this year, but to have that track and a follow-up the company also works with other local (‘Congratulations’) blocked in India, with and global services. the second track courting controversy with T-Series’ main its allegations about T-Series’ business. YouTube channel may Ultimately, though, T-Series did be in the headlines, but dethrone PewDiePie, and has since put ever on T-Series’ main channel is ‘Lahore’ it’s just the tentpole clear between the two channels. By by , with 728.3m views for a wider strategy. mid-May, PewDiePie had just under 96m since its release in December 2017. But The company has subscribers, while T-Series had 99.1m. It the channel has 129 videos with more 28 smaller channels will surely soon become the first YouTube than 100m individual views at the time of focusing on different channel to reach the 100m milestone. writing. languages and genres, The channel was created in March In terms of uploads, it’s not unusual some of which have 2006, although the earliest video currently for T-Series to publish up to eight or nine impressive subscriber available on it was uploaded in December new videos a day, taking in film trailers, counts in their own 2010: an official trailer for the film Patiala audio tracks, lyric videos, music videos right. House. The channel has since generated and even the odd full album. View counts T-Series Bhakti nearly 71bn lifetime views on YouTube. range from hundreds of thousands to tens #BharatWinsYouTube (Bharat being the Sagar (18.9m subscribers, pictured above), There is a long, long tail to these views. of millions, depending on the type of video alternative name for India) to encourage T-Series Apna (16.9m), Bollywood YouTube’s most popular video ever is and the popularity of the film it comes people there to subscribe to the channel. Classics (10m) and Pop Chartbusters ‘Despacito’ with 6.2bn views at the time of from. “For us, this status does not result (7.1m) are some of the most popular side

report writing, with all of the top 30 videos north T-Series more than held its own during in any change on the commercial front. channels for the company, while even its of 2bn views. the battle with PewDiePie, launching However, it changes the perception about T-Series Kids Hut channel for children has In contrast, the most popular video its own campaign with the hashtag who we are,” chairman and MD Bhushan nearly 1.1m subscribers. :) the 10

ISSUE 423 23.05.19 YOUTUBE INDIA Strong local rivals They may struggle to match YouTube’s active-user count, but Indian audio streaming services are growing well

ith YouTube Music and Spotify Airtel made a fascinating move at the end its 100m milestone announcement in both launching in India in the of April, launching a brand new app called April, the company revealed a new feature early part of 2019, it should Wynk Tube which really does step onto called Gaana Video, which is all about have come as no surprise YouTube’s turf by offering audio and video vertical videos that can be played within its Wto see the established Indian streaming streaming within the same app. streaming service – comparable to Spotify’s services publishing figures to show their It was launched for Android smartphones similar feature. popularity. initially as an app with a small 5MB file- Gaana has also been investing in its size, designed to work even on relatively voice-control features, which are now used low-spec handsets. Airtel said the goal by nearly a quarter of its listeners. was to “simplify the digital entertainment JioSaavn reportedly reached its 100m experience for hundreds of millions of milestone in April – it had 104m active smartphones users, particularly in Tier 2 and users according to sources close to the 3 towns and villages”. company – which suggested sharp growth If that wasn’t enough of a statement of in the five months since it was born from the intention, Airtel’s CEO of content and apps, merger of Reliance’s JioMusic service with Sameer Batra, said that “we hope to build independent service Saavn. Wynk Tube into one of the most popular One of JioSaavn’s (left) most interesting music platforms in India with even the initiatives remains its Artist Original tracks, possibility of user-generated content as a where it pairs Western and Indian artists differentiator”. for collaborations which are exclusive to its Gaana, too, is investing in video, service in India, but also released globally on although in a different context. Alongside other platforms. February saw bucket-headed dance star Marshmello take part, releasing ‘BIBA’ with Indian film-track composer . It’s been Gaana (above) and JioSaavn both YouTube Music and Spotify, not least their streamed 7.3m times on Spotify, while its announced that they had 100m monthly corporate parents. Wynk Music (above) official video has 44m views on YouTube. active users (MAUs) while Wynk Music said is part of telco Airtel; JioSaavn is part of While TikTok may not be a full music that its app had been installed more than telco Reliance ; and Gaana sits within service, it’s important to not forget its impact 100m times. the Times Internet media group – and also in India, especially in the battle for younger For outsiders, these figures might be raised a $115m funding round led by Chinese smartphone owners’ attention. At the point hard to square with claims in a recent report internet giant Tencent in February 2018. in April when it was removed (due to a court that there are around 150m people in India As audio streaming services, all three order) from Google and Apple’s app stores using any music streaming service – at the have traditionally been seen as competing the app reportedly had 120m users in India. very least, it hints at considerable overlap with one another, more than they have been It has since been restored to the stores

report between the three main platforms. compared to YouTube – even though it is the and can be seen as a competitor to All three have the muscle to fight their elephant in the room of this market in India YouTube on the user-generated content corner amid the entry into the market of just as it is elsewhere. side of things. :) the 11

ISSUE 423 23.05.19 YOUTUBE INDIA Can Spotify take on YouTube in India? YouTube’s popularity is just one of the challenges facing Spotify as it builds its Indian audience

t isn’t easy being Spotify. It’s harder being Spotify in India, a country where the launch of the world’s number one audio Istreaming service has been the subject of much speculation and controversy. Now that’s it here, without most of the catalogue and that of , India’s oldest that owns the rights to the majority of film soundtracks released between the 1950s and the 1980s, Spotify might find it tough to compete for the position of the nation’s top streaming service. So far, it’s got off to a decent start. The company recently announced that it had more than 2m Said Vijay Basrur, the founder of Indian with a mobile handset manufacturer movie [soundtrack] release or a popular monthly active users two months after independent music as it has done in other territories. “If all artist.” launching in India, even if that news was service OK Listen!: “If you look at the Samsung phones come pre-loaded with At least some things are going well. overshadowed by YouTube Music’s “15m major players right now, it’s the only [one] Spotify, not only the software but a trial Industry observers say that engagement is downloads” and the 100m milestones of outside of an ecosystem.” subscription, it would be interesting,” said higher on Spotify than on other platforms. Gaana, JioSaavn and Wynk Music. Amazon has its vast base of Amazon Basrur. Aware that India is an Android- “One of the surprises is the consumption Despite its freemium model, Spotify in Prime customers, has a dominated market, the company just per consumer”, says Jay Mehta, director particular seems to face a unique set of niche but loyal following for its parent released a ‘Lite’ version of its app for low- of digital business at . challenges. Unlike most other competitors, company’s products, JioSaavn and Wynk end phones. “Considering the overall engagement it functions outside of a support system of are part of major telecom companies Jio But when it comes to working with per user per month that we have in India, sorts, something that Spotify India’s MD and Airtel respectively and Gaana has labels and musicians, Spotify’s layout, they definitely have an edge. When Amarjit Singh Batra sees as an advantage. the marketing muscle of its owner – the which emphasises playlists over specific they started off, it was more than 2X the “We’re probably the only company Times of India Group. This also means the artists or releases could be a bit of a average.” focused only on this and not doing competition can afford to cut prices, as roadblock as well, feels Basrur. Batra said that in addition to the top anything else,” Batra told music:)ally. “Our Gaana and JioSaavn did within a month “When you open Spotify, you don’t see metros, users are “coming in from all parts investments in people, resources and of Spotify’s arrival. Apple Music has also an editorial push in terms of the content of the country” such as, for example,

report innovation are [all] within this space.” Even followed suit. that’s surfacing,” he said. “When you open the city of Guwahati in northeast India. so, this means Spotify will have a steeper Basrur believes the platform would JioSaavn, Gaana or Apple Music, what This, he said, is reflected in Spotify’s climb while garnering market share. therefore benefit greatly by partnering you see seems to be very relevant like a most popular India-specific playlists: the 12

ISSUE 423 23.05.19 YOUTUBE INDIA

it launched with more than 100, Halsey; ‘On My Way’ by Alan Walker film-centric market. Other companies covering a range of languages and featuring Sabrina Carpenter and have addressed this by producing original genres. Farruko; ‘Sucker’ by Jonas Brothers; content, such as JioSaavn’s Artist This strategy appears to be ‘I Can’t Get Enough’ by Benny Originals and Gaana’s Originals releases, working. “The depth of playlists Blanco, Selena Gomez, J. Balvin and making deals for exclusives, as Apple we have stands out compared and Tainy; and ‘7 Rings’ by Ariana Music has done with a number of Indian to anybody else in this space,” Grande. independent acts. said Batra. Users have also been K-Pop, the popularity of which Spotify, which has an anti-exclusive impressed by “the easy interface” has been growing exponentially in stand, has yet to introduce its artist- and the level of personalisation India, appears to be over-indexing specific initiatives such as the Spotify on offered by the service, he said. on Spotify where, in mid-May, tracks Stage gig series and Fans First, through “What [Spotify has] going for by both BTS and Blackpink are in which users get early access to concert them is passive discovery,” said the Top 30 while six tunes by the tickets and merchandise, in India. Basrur. “That algorithm they have boy band (‘Fake Love’ and five of the Batra said that these offline activities is very, very powerful.” Mehta also seven songs on new EP Map of the are “something we see ourselves doing”. praised Spotify for the “consumer Soul: Persona) are placed in the top Perhaps we’re looking for too much too insights” that it offers, which he is 200. soon from Spotify like, for instance, the said is unmatched by other players. A common grouse among belief that it will be the one to help Indian “We didn’t have all of this for Indian players, including Spotify, is the acts break through internationally. For its consumers, except [from] YouTube,” dearth of local independent content part, Spotify has been seeding Bollywood he said. in the country, which remains a and Indi-pop tracks into playlists such as Batra said the company isn’t going Global X, which aims to have after a specific customer base. “Our job Though songs are available in all listeners “discover is to grow the market,” he said. “Anybody Indian languages, Spotify is currently crossover hits from cultures who listens to music, we want to be a curating playlists in four – Hindi, Punjabi, around the world”. platform for them.” Tamil and Telugu – which according to And almost a year before Based on its ongoing advertising Batra, account for “90 per cent” of all it arrived, the platform had and marketing campaigns, however, it consumption. “Going forward, we’re going appointed American-Indian clearly seems to be targeting the youth, to look at other languages [including] rapper Himanshu Suri as the who perhaps won’t be turned off by the Marathi, , , Bhojpuri, head of Indian culture. Suri absence of many classic Bollywood Bengali [and] Gujarati,” he said. works out of their New York soundtracks. Looking at the daily charts that Spotify office and handles the service’s The campaign encompasses hyperlocal publishes for the most-streamed tracks Desi page. billboards in cities “with younger in India, it appears that the service has “There’s so much hype around audiences” and “high student density” attracted the urban consumer who listens them that people have a lot of namely , Bengaluru, , to international music. expectations,” said Basrur. “My , Guwahati, Kochi, Kolkata, Kota, So far, the #1 tunes on any particular guess is that before they decide and ; video ads on OTT day have all been international pop hits: to do anything large, they will

report channels and social media; and a tie-up ‘If I Can’t Have You’ by Shawn Mendes; make sure they’re on a steady with Hindi, Telugu and Tamil film stars to ‘ME!’ by Taylor Swift featuring Brendon course of normalisation. They promote their playlists on . Urie; ‘Boy With Luv’ by BTS featuring will take it a little slow.” :) the 13 Music Ally is a music business information and strategy company. We focus on the change taking place in the Music Ally is an ISSUE 423 industry and provide information and insight into every aspect of the business, consumer research analysing 22.05.19 example of perceptive the changing behaviour and trends in the industry, consultancy services to companies ranging from blue journalism at its chip retailers and telecoms companies to start-ups; and training around methods to digitally market your best, with unrivalled artists and maximise the effectiveness of digital campaigns. We also work with a number of high profile music Andrew Fisher, events around the world, from Bogota to Berlin and Brighton, bringing the industry together to have a good CEO, coverage of the commonsense debate and get some consensus on how to move forward. Entertainment digital music sector”

ANTHONY CHURCHMAN STUART DREDGE Contact: music:)ally Business development Editor at large Studio 11, Holborn Studios, 49-50 Eagle Wharf Rd, [email protected] [email protected] London N1 7ED Tel: +44 (0)20 7250 3637 b www.MusicAlly.com e [email protected] EAMONN FORDE ISABELLE LJUNGQVIST

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