EY is forecasting 21 million paid streaming subscriptions for the Indian music market by 2027. Photo Credit: EY
Amid a major paid streaming push, the Indian music market more than doubled its subscription revenue during 2024, per a new report. However, decreases also hit total on-demand listeners and digital revenue.
These and other insights come from a new EY India and FICCI report. Spanning roughly 300 pages, the all-encompassing breakdown covers multiple sides of India’s media and entertainment space – illustrating worthwhile cross-sector takeaways in the process.
Keeping the focus on the Indian music market for a moment, total non-radio revenue came in at about $619.45 million (INR 53 billion) during 2024, down close to 2% YoY, according to the report. And digital revenue fell 11% YoY to make up 62.4% of the overall market.
Traditional radio, on the other hand, is said to have achieved 9.1% YoY revenue growth to $292.19 million (INR 25 billion).
But behind music’s top-level and digital revenue slips, paid on-demand subscriptions are said to have spiked from seven million in 2023 to 10.5 million in 2024. This boost elevated subscription revenue to $81.81 million (INR 7 billion) in the Indian music market last year, per the resource.
At least according to the report, however, the paid streaming push fueled a dip (185 million to 175 million) in India’s total on-demand streaming users.
(Certain platforms are limiting the features available to ad-supported users, while Gaana as well as Hungama are now “entirely pay,” the report reiterates.)
As the authors (but not the quoted music execs) see things, it’ll take some time for the subscription prioritization to pay off for the industry – with the nation of 1.4 billion projected to have 21 million total paid music subscribers by 2027.
“Given the availability of free and ad-supported alternatives like YouTube and radio, and the absence of exclusive content, the growth in the pay subscriber base will remain muted,” reads one relevant section of the report, which points to total streaming ARPU of 69 cents (INR 55) for 2024.
On this front, the document also explores YouTube’s strong reach in India, where “online adults” age 35 and up are said to have spent an average of 80 minutes per day on the platform in 2024.
According to EY India’s analysis of Indian Performing Right Society data for 2024, total music streaming volume in India (and, in turn, the global market) is substantially larger than other reports have found. Photo Credit: EY
Running with that point, the nation’s 204 million “total music streamers” recorded just shy of 4.8 trillion song plays last year, the document shows – meaning fan interest certainly isn’t an issue.
(Incidentally, that number’s essentially flat with the 4.8 trillion “on-demand streaming audio” plays Luminate identified for the entire global market in 2024.)
Meanwhile, 63% of India’s 2024 music streaming consumption (by the portion of total plays) reached film-based releases, according to EY’s resource.
As for forthcoming plans to enhance streaming monetization in the Indian music market, the authors are anticipating “significant innovation around bundling, expanding the number of accounts and pricing options for various audience categories in order to facilitate growth.”
Content shared from www.digitalmusicnews.com.