Spotify sees India as key growth engine in AI-powered global expansion

NEW YORK: Spotify has identified India as one of its fastest-growing markets, with the company revealing that its subscriber base in the country has grown sevenfold since 2022 as it sharpens its focus on AI-driven personalisation and global expansion.

Speaking at Spotify Investor Day 2026 in New York, Spotify executives highlighted India as a major contributor to the platform’s next growth phase, alongside emerging markets such as Brazil.

Spotify SVP of markets and subscriptions Gustav Gyllenhammar said India is now among Spotify’s largest markets by monthly active users, underlining the streaming platform’s growing foothold in one of the world’s most competitive digital entertainment markets.

The company credited this growth to deeper localisation efforts, regional partnerships and payment integrations tailored for Indian consumers.

Spotify said its broader global strategy now centres on artificial intelligence, interactive experiences and premium add-ons, with India expected to play a key role in scaling these initiatives due to its large young digital audience and rapidly growing streaming culture.

The company, which operates across 184 markets and now serves 761 million active users globally, said it is increasingly moving from traditional recommendation systems to AI-generated and personalised listening experiences powered by what it calls a “Large Taste Model”.

Executives said the platform processes 3.4 trillion daily taste signals to shape user experiences across music, podcasts and audiobooks.

Spotify co-ceo Alex Norström said the company sees a major opportunity in building personalised products for highly engaged users across markets.

“Spotify is in the business of delivering creativity and culture to the world, helping artists, creators, and authors connect with audiences and grow their careers,” Spotify co-CEO Alex Norström said.

The company also pointed to rapid growth in collaborative and social listening features such as Jam and collaborative playlists, both now used by nearly 50 million people globally.

India’s importance comes at a time when competition in the country’s audio streaming market remains intense, with players battling for users across music, podcasts, regional content and short-form audio.

Spotify indicated that AI-powered localisation will become central to improving user retention and subscriber conversion in markets such as India, where free users continue to significantly outnumber paid subscribers.

The company also announced several new AI-led products and monetisation initiatives globally, including AI-generated playlist tools, audiobook expansion, personalised podcast experiences and “Reserved by Spotify”, a concert ticket access programme launched with Live Nation.

In music, Spotify said it paid more than $11 billion to the music industry in 2025 and unveiled new licensing partnerships with Universal Music Group and Universal Music Publishing Group that will allow users to create AI-powered covers and remixes while ensuring artists receive compensation.

The company also shared ambitious long-term financial goals, targeting mid-teens revenue growth and operating margins above 20 per cent by 2030.

For India, however, the message was clear: Spotify is not just chasing listeners here anymore. It is betting that the country could become one of the biggest proving grounds for its AI-first future.