{Warner/Chappell} went to court in India last week ahead of Spotify’s long-awaited launch in the market. The mini-major is yet to agree to a deal with Spotify for India, and that deal would cover Warner’s Anglo-American songs repertoire as well as its recordings catalogue. {…}
Spotify’s solution to that problem was to argue that there is a compulsory licence available under Indian copyright law which means it can utilise Warner’s songs without a bespoke direct deal, providing it pays the royalties due under that compulsory licence. Warner argues that the compulsory licence Spotify is relying on doesn’t apply to on-demand streaming services, and it wants a court order confirming that fact. The legal spat is ongoing.
… and then via Variety:
Spotify, which finally launched in India last Tuesday — albeit without securing a deal with Warner Music — after months of delays, says that it has reached 1 million users on both its paid and free tiers in just under a week.
This impressive sounding news has spread quickly throughout the media. It’s almost like Spotify’s PR is actively pushing this ‘1 million users’ number to trumpet the importance of the platform in the Indian market, eh? One could even see a strategy similar to Spotify’s ascension in the US with regards to publishing rights — show that the music needs Spotify more than the other way around, and figure out the rights later.
The Verge, however, rains on this parade:
India’s total population is 1.34 billion people, but only about 150 million, or about 11 percent, subscribe to a music streaming service, according to a report by Deloitte and Indian music-industry body IMI published earlier this year. Of this 150 million, less than one percent of subscribers pay for a subscription and about 14 percent have a bundled subscription (such as Amazon Prime, or through a mobile contract). The remaining 85 percent stream music with free subscriptions. So, while 1 million is a large number, Spotify is reaching less than one percent of the Indian music streaming population, and it has likely signed up few paid subscribers.
… and the publishers are buckling down, according, again, to Complete Music Update:
… you might expect those publishers which do have deals with Spotify in India to be on the streaming service’s side. Except, Spotify’s interpretation of Indian copyright law extends the reach of compulsory licensing in India. And if there’s one thing all labels and publishers hate more than anything else, it’s the idea of the reach of compulsory licensing being extended.
That is the reason why, shortly after a board meeting of the {International Confederation Of Music Publishers}, the trade group’s Director General John Phelan stated: “Music publishers worldwide work in the interest of all creators and will fight for appropriate remuneration for all licensed use of their work. At the heart of this problem is the inappropriate use of music and the subsequent undervaluation of songwriters – Indian and international. ICMP and its members express their full support of Warner/Chappell Music in its actions”.
I’ll close with a damning observation from David Turner in today’s installment of his excellent Penny Fractions newsletter:
… this situation reminds me of Spotify’s early usage of pirated music to launch the company {as detailed in the new book Spotify Teardown}. The attempt to skirt Indian law in how they licensed the music of Warner Music Group isn’t bold or interesting, it’s just unethical.
This could get messy.
🔗→ Global music publishing group backs Warner in its Spotify spat in India🔗→ Spotify India Reaches 1 Million Total Users in First Week🔗→ Spotify just made a tiny dent in India’s fast-growing market🔗→ Penny Fractions: Why You Must Read ‘Spotify Teardown’