Some government initiatives such as Digital India and Bharat Net along with the ever-growing youth population in India has given rise to the smartphone consumption in India. This coupled with an increase in the penetration of internet in Tier 2 and Tier 3 cites will drive music streaming in India, by 2023 according to a TechSci Research report.
Let’s deep dive into what the revenues in India for the music industry have been. In 2016, the music revenues in India were Rs. 570.7 crores which grew to 725.5 crores in 2017 as reported by gadgets.NDTV.
The increase in the revenue of 154.9 crores has been the largest since the year 2011 according to the data from IFPI i.e. a non-profit international organization which essentially represents 1,300 record companies across the globe.
Perhaps what is even more interesting is that the digital music revenue alone in 2017 was Rs. 665.6 crore which is greater than the combined industry revenue of Rs. 570.7 crore in 2016.
To this Sony Music’s India and Middle East president – Shridhar Subramaniam, in a statement to IANS said – “Last year’s figures were phenomenal and we were expecting the market to do well this year as well, but a 27 percent growth in 2017 has exceeded our forecasts. Going into 2018, our aim is to make music even more accessible, affordable and unlimited. To sustain this growth, the industry will start laying the groundwork for a subscription eco-system,”
Additionally, Blaise Fernandes who is the president and CEO of IMI feels elated about the fact that digital music is claiming a larger part of the music revenue. He said – “Various initiatives undertaken by the government like Digital India and Bharat Net programmes will enable the Indian music industry to out-perform most evolved recorded music industries in the digital domain and climb up in rankings in the coming years.”
We agree with Blaise that the face of music streaming in India is changing especially with more penetration of internet and data which allows consumers to access music platforms on smartphones that are also incentivized with reduced price modules.
Something to note of the current evolving trends in the music streaming market is the launch of platforms such as Saavn, Google Play Music, Wynk and Gaana is creating a new consumer market for music in India. Those who were not willing to pay for subscriptions earlier are now considering to do so. Not only consumption patterns of consumers are facing a change, but, consumer mindsets are changing as well w.r.t. to subscription-based music consumption. The largest revenue in India was generated by the northern region in 2017 owing to high purchasing power.
Coming back to the TechSci Research report which you can read here; it not only analyses emerging trends along with major drivers, but also throws light on challenges, and opportunities in the Indian music streaming market. If the music streaming revenue has exceeded forecasts in 2017, we can’t wait for the figures for this year. To add to that anticipation, Mr. Karan Chechi ’s who is the research director with TechSci Research, which is a global market research firm, said –
“With the availability of local language content and free music streaming content on a variety of platforms, entry of global players in the market and improving access speeds, music streaming market in India is anticipated to register strong growth over the coming years. Moreover, tie-ups between music streaming companies and music labels are creating an attractive collection of a music library. All the aforementioned factors are anticipated to boost average revenue per user and propel the music streaming market in India during the forecast period.”
We are excited to see how consumption patterns and trends change in this evolving time for music streaming in India. What do you think about the increase in the music streaming market by 2023 forecast? Tell us your thoughts below.