India’s digital music revenue slips in 2024 despite paid streaming growth
India’s digital music revenue dropped 11% in 2024, even as paid streaming subscriptions hit record highs.
India’s music industry experienced a surprising shift in 2024, as digital revenue fell by 11% despite an increase in paid music streaming subscriptions. According to a new report from EY India and FICCI, total non-radio music revenue dropped nearly 2% year-on-year to approximately $619.45 million (INR 53 billion). Digital revenue now accounts for 62.4% of the overall market, but its decline signals ongoing challenges in the industry.
One of the most significant changes last year was the rise in paid subscriptions. The number of paying music subscribers in India grew from 7 million in 2023 to 10.5 million in 2024. This surge helped subscription revenue more than double to $81.81 million (INR 7 billion). However, the total number of on-demand streaming users declined from 185 million to 175 million. The report attributes this drop to certain streaming platforms limiting their free-tier features, with Gaana and Hungama now operating as “entirely pay” services, making them inaccessible to non-paying users.
The struggle to monetise streaming continues, with free and ad-supported services like YouTube drawing massive audiences. The report states, “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.” YouTube remains a dominant force, with Indian adults aged 35 and over spending an average of 80 minutes per day on the platform in 2024.
Looking ahead, the report predicts that India will have 21 million paid music subscribers by 2027. To drive monetisation, the industry is expected to focus on “significant innovation around bundling” and the expansion of “pricing options for various audience categories in order to facilitate growth.”
These findings indicate that while paid streaming is gaining traction, digital revenue remains volatile. The industry faces ongoing challenges in converting free users into subscribers, and platforms are expected to experiment with new pricing and bundling strategies to address this issue.