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Spotify gets 1 million users in India with dirt cheap subscriptions | Business Insider

Within just a week of being launched in India, Spotify has apparently garnered a million users — in spite of legal troubles with Warner Music Group.

Even though Spotify hit a few speed bumps prior to being launched in India, its strong start could be as a result of its competitive pricing strategy.

In the United States, a Spotify subscription will set you back $9.99 every month — however, in India the monthly subscription costs a mere $1.70, which is over 80% cheaper than its US price.

In both countries, you’re given a 30-day trial to figure out if you’re happy to continue to pay for the service.

One theory behind the pricing, according to Music Business Worldwide, is that Spotify charges only what a market can bear, using each country’s per capita gross domestic product (GDP) as a measure.

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Spotify gets 1 million users in India with dirt cheap subscriptions – Business Insider.