With 80 million monthly users, Gaana is embedded with over 50% of India’s 150 million music app customers. The app has surpassed local rivals (Wynk, Hungama) on Google Trends, and offers a two-tiered service: a free ad-supported version and a paid subscription version.
The company hopes to reach 200 million over the next two years. As explained by Prashan Agarwal, company CEO:
“In the next two years, we think the market will grow from 150 million users to over 400 million users and we would like to lead the market with over 50 percent market share.”
Gaana’s success is a barrier to a competitor who seeks to expand their own market share in India: Spotify. Spotify is looking to expand in India, launching with a limited catalog and relying on free ad-supported service to hopefully bring in new subscribers. Under these sorts of deals, major labels often receive much less than for premium subscription packages. Last March Spotify opened up an office in Mumbai, but its stiff competition is expected to pose quite the challenge in India’s growing market.