The program enables users to stream online for free music after downloading an application, or pay S$9.90 a month for a premium version of the service; the free version functions advertisements while the premium version will not.
Worldwide, the recorded music business grew 0.3 per cent from US$16.3 billion in 2011 to around US$16.5 billion in 2012.
In contrast, figures from the International Federation of the Phonographic Industry reveal that digital music subscription providers grew 44 per cent on-year to 20 million subscribers a year ago, and revenue growth was up 59 per cent to US$430 million in 2012.
Sriram Krishnan, Spotify‘s head of new markets, Asia Pacific, said: “We are actually at 24 million active customers and 6 million paying customers so we’re confident the uptake in Singapore is going to be great, and Hong Kong and Malaysia will be excellent as well.
From this place in the world, we’ll have local music. We’ll also make certain that product is tweaked so that customers can use the service and language that they are generally accustomed to, he added.
As revenue from other music mediums, like CDs, decline, some believe Spotify‘s model would be the future of music.
Frost & Sullivan’s Vice President of ICT Practice, Asia Pacific Andrew Milroy said: “Typically if you have decent high speed networks in place, that tends to make the model more attractive. Therefore the trend is for people to consume music from the web over their cellular devices more and more. Where that is possible, where there is 4G, that can make it more appealing. So markets such as Singapore become very attractive.”
Some other music streaming competitors like Deezer from France have previously entered Asian markets, and the competition, analysts say, is stiff.
To stay before game, some experts say companies such as Spotify could move into other music meccas such as Japan and South Korea to grow business.