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thereport ISSUE 423 | 23 MAY 2019
YouTube’s India opportunity
Why the world’s biggest music streaming service is riding
high in the industry’s next key growth market
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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: Alka Yagnik
and Neha Kakkar. In the week of Ed
Sheeran’s re-emergence with a Justin
Bieber duet, his 141m weekly views lagged
behind Yagnik’s 180m and Kakkar’s 171m.
Two more Indian artists, Kumar Sanu and
Udit Narayan, 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
YouTube Music app zipped to 15m
India is the fastest-
growing market downloads within a few weeks of launch.
In one of the most eagerly watched ‘high-
potential’ markets for recorded music,
for Google’s video
service, with YouTube is already the biggest player,
despite intensifying competition among
audio streaming services.
music to the fore
The two main figures we have
from YouTube are the 265m
active users (for the overall
platform) and 15m downloads
YouTube’s India opportunity (for the YouTube Music
app). But some recent
industry studies have
provided more insight into
W
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
the report
bulletin on 1st May 2015. its rise – and by October 2016 T-Series 2019 and T-Series has Federation of Indian
The focus was on Taylor Swift’s status was the most popular YouTube channel by just become the most Chambers of
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 videos by people in India (and the Indian subscribers (not (FICCI) and
Neha Kakkar
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23.05.19 YOUTUBE INDIA
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 Canada represents a major Gurbaxani’s piece for us on Spotify’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 Bollywood 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
now, 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
the report
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
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:
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‘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
I
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 Susan Wojcicki 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
the report
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
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.”
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23.05.19 YOUTUBE INDIA
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 songwriters 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 dance 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 Guru
Premium subscription starting at 99 rupees community of music lovers from all corners that 500m internet users will consume Randhawa (below), Rahat Fateh Ali Khan
[$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
the report
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
“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,
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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, Diljit Dosanjh, 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 Kumar Sanu. 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.
the report
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
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.” :)
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
D
rake, Ariana Grande, Ed Sheer-
an... The most popular artists
on Spotify’s global artists
chart have tended to be North
American 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.
ARIJIT SINGH
NEHA KAKKAR
Born in the city of Rishikesh in the state of
Uttarakhand in 1988, Kakkar first came to
prominence as a contestant on TV talent
show Indian Idol in 2006. She has since
recorded tracks for a steady stream of
movies.
In the 12 months to mid-May 2019,
Kakkar’s music generated 8.23bn views
ALKA YAGNIK
Born in Kolkata in West Bengal 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 Sirf Tum, 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 Simmba, with generation of playback singers, born in
to. She’s been recording since 1980, and 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
KUMAR SANU
In the 12 months to mid-May 2019, Like Yagnik, Sanu was born in Kolkata, Gurukul in 2005.
the report
Yagnik’s music generated 8.54bn views West Bengal, in 1955. He’s a veteran In the 12 months to mid-May 2019,
UDIT NARAYAN
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
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 Dhadkan, with 211m views over world record holder, having once recorded playback singer with a lengthy back Fitoor’ 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. :)
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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’
L
yor Cohen may be based in the
US, but he’s well aware of what’s
MOST OF THE USERS THERE
happening in India with YouTube,
WILL ACCESS THE FREE VER-
music, and now YouTube Music.
SION OF YOUTUBE. WHAT IS THE
He talked to music:) ally about how he
UPSELL STRATEGY FROM FREE
sees the country. TO PAID ON YOUTUBE MUSIC?
We don’t talk about ‘free’ because people
are paying with their eyeballs. To me
there is no question that the key to being
WHAT IS THE REAL POTENTIAL
successful in India is the two-engine
OF MUSIC IN INDIA?
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 starting to see tremendous growth in the course, subscription. As the middle-class
part of Indian culture for over 1,000 years. independent sector. emerges, it becomes a bigger opportunity.
BECOME AN ENTITY IN ITS
I thought that was fascinating. We also believe in direct-to-consumer
OWN RIGHT IN INDIA, RATHER
All eyes are on China and its emerging and that is one of our very important
THAN AN ANCILLARY PART
middle class; but to witness the contributions to the labels and the artists
OF THE FILM BUSINESS? INDIA IS YOUTUBE’S
enthusiasm in India about the economic The independent sector – the non- where they can layer in memberships
FASTEST GROWING
growth of the country is phenomenal. Bollywood-affiliated releases – is growing as well as things like merchandise and
MARKET. WHY IS THAT?
and artists are now able to write and sing It is smartphone connectivity for one. Also, ticketing. This is alternative monetisation.
their own songs independent of Bollywood as I said, Indians see music and don’t We are pushing on all revenue sources
films. People are not talking about this in simply hear it. What better platform to do with the industry.
WHAT ARE THE
disrespectful terms; they are talking about it through than YouTube? YouTube is also
CHALLENGES IN INDIA?
There are multiple challenges here. it in terms of opportunity. one of the most adored brands in India.
One of those challenges is that many of Artists are now aware they can write They love YouTube. People in India travel
SPOTIFY HAS SIGNED UP
the report
the artists want to sing what they call Bollywood songs and they can also write great lengths, so having their smartphone
2M USERS IN INDIA SINCE
“independent music”. That does not mean their own songs that are not associated with them and being able to access
ITS LAUNCH, BUT YOUTUBE
a non-major. When they reference an with the movies. There is a lot of media on YouTube makes those long and MUSIC HAS 15M DOWNLOADS.
“independent record” they mean one that enthusiasm internally for that. arduous journeys more bearable. Plus
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
WHAT’S DIFFERENT?
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23.05.19 YOUTUBE INDIA
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.
We have a well-liked brand that the
CAN YOU OFFER INDIAN ACTS?
consumer has a real affinity with. YouTube is committed to co-investing
with the labels and helping them to find
and grow their audiences. We have
built an artist relations team and a label
HOW WILL LOCALISATION
relations team. We have centralised to
WORK ON YOUTUBE MUSIC?
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.
We are excited about the 3.0 and 4.0
HOW DID YOU SIDESTEP
versions of streaming where local cultures
THE LICENSING PROBLEMS
can thrive and where music can thrive and
THAT SPOTIFY HAS
not be hit by the tidal 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 Indian people. 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
show up, announce we are going to launch
how the platform works. that other platforms may not have – and then say that we need licences.
WHAT CAN YOUTUBE OFFER
They understand how the algorithm because of video, global reach and so We have been in the market for quite
INDIAN ARTISTS TO HELP EX-
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 report
PORT THEM OUTSIDE OF INDIA?
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
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. :)
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23.05.19 YOUTUBE INDIA
T-Series takes top spot
YouTube’s biggest channel in terms of subscribers is a film music powerhouse
F
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
Yet 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 water between the two channels. By by Guru Randhawa, 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 Punjab (16.9m), Bollywood
the report
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
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. :)10
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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
W
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
to 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 Pritam. 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 Jio; 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
the report
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
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. :)11
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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
I
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
streaming service has been the
subject of much speculation and
controversy.
Now that’s it here, without
most of the Warner Music
Group catalogue and that of
Saregama, India’s oldest record
label that owns the rights
to the majority of Hindi 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 digital distribution 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, Apple Music 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 Sony Music India.
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
the report
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,
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: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 rhythmic
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, Malayalam, Kannada, 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 Ahmedabad, Bengaluru, Chennai, to international music. expectations,” said Basrur. “My
the report
Delhi, Guwahati, Kochi, Kolkata, Kota, So far, the #1 tunes on any particular guess is that before they decide
Mumbai and Pune; video ads on OTT day have all been international pop hits: to do anything large, they will
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 Twitter. Urie; ‘Boy With Luv’ by BTS featuring will take it a little slow.” :)13
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22.05.19
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