Has Race To The Bottom Begun? JioSaavn Cut Prices 75% To Battle Spotify, YouTube Music
Previously, JioSaavn charged $14.49 or Rs. 999 for a full year of Pro, now it's just $4.34 or Rs. 299 yearly. The subscriptions will cost Rs 399 or $5.79 in year two, according to reports.
A similar Spotify ad free plan in the US costs $119.88 per year.
@JioSaavn brings down annual subscription price from ₹999 to ₹299 for the first year, and will charge ₹399 from next year onward. All other shorter-duration packs don't show-up anymore except for the monthly plan that still costs ₹99. pic.twitter.com/9LgLVy1S3a
— Karandeep Singh — ਕਰਨਦੀਪ ਸਿੰਘ (@kdsinggh) March 22, 2019
Even taking local income differences into account, $4.34 per year pricing in a country where only 1% of potential users pay for music at all, is certain to be a topic of discussion at Spotify's current re-licensing talks with the major labels.
With much of the potential growth for Spotify and other music streamers likely to come from emerging markets like India, the issue, will not be easily resolved.