India’s music market faces challenges as it looks to growth opportunities in 2025
As India eyes global music dominance, the industry must tackle monetization challenges to unlock its full potential.
India’s audio industry in focus
At the recent World Audio Visual and Entertainment Summit (WAVES) in Mumbai, organized by the Ministry of Information and Broadcasting, discussions highlighted the nation’s potential to become a global player in the music industry. Despite playing a relatively minor role at the summit, panel discussions included the growth opportunities in India’s music market. However, unlocking that potential won’t come without tackling a few big hurdles.
India’s recorded music industry is currently worth ₹3,200 crore (around $378 million). The average cost to acquire a five-song Hindi film soundtrack has risen to between ₹20 crore ($2.4 million) and ₹35 crore ($4.1 million)- a jump from the respective ₹15 crore and ₹25 crore reported nine months ago.
Despite these seemingly strong figures, India fell to 15th place in the IFPI’s global rankings in 2024 due to flat revenues. Executives believe the market has high potential if customers start subscribing to music streaming services. As Vikram Mehra, Managing Director of Saregama, bluntly put it:
“Unless the subscription business takes off in India, we have a problem coming our way.”
Vikram Mehra, Managing Director of Saregama
Untapped potential
India boasts one of the world’s largest music audiences and the world’s biggest population, yet remains one of the lowest in terms of revenue per capita. Vikram Mehra believes this growth could reach between “30% to 50% per year for the next decade” as long as issues around subscriptions and the impact of AI on copyright material are resolved.
There are roughly 20 million paying music subscribers in India, contributing to over $60 million. Compare that to China, which had about 200 million paying subscribers in 2024 and generated more than $1 billion in revenue- a market that was trailing India by 36% in 2023.
Universal Music’s Senior VP of Asia Public Policy, Kwee Tiang Ang, credited China’s rapid rise of paid subscriptions. If India follows suit, it could require incentives and a cultural shift towards monetized streaming.
With over 550 million monthly active users on YouTube in India, nearly 40% of whom are audio-streamers, the country represents an untapped opportunity. If even a fraction of that user base converted to paid streaming, India could quickly rival global music markets. With greater market penetration, India could create global number ones just from domestic streams.
“Imagine if the total audio universe comes closer to YouTube penetration, India will start giving a global number one [song] on Spotify only on the back of [domestic] streams.”
Jay Mehta, Managing Director at Warner Music India
The monetization challenge
YouTube’s dominance in India is both a blessing and a curse. YouTube’s widespread use for free music access arguably means that many in India do not feel the need for paid music subscriptions. Unlike video streaming platforms like Netflix, music platforms often offer the same catalog, making free access on YouTube an easy default for many users.
With this behaviour ingrained in Indian culture, this creates a unique challenge for platforms as they look to monetize something that is accessed for free.
At the same time, platforms like YouTube are stepping up music-specific efforts in India to try to better capitalize on this large and active audience.
Spotify’s role in India’s music ascent
Spotify has made significant inroads in India since its launch in 2019. Between 2019 and 2023, international streams of Indian artists on the platform grew by more than 2,000%. In 2024, half of Indian artists’ revenue on Spotify came from outside the country, highlighting the growing global appeal of Indian music.
At WAVES, Spotify’s Global Chief Public Affairs Officer Dustee Jenkins emphasized the company’s commitment to India, noting that local teams are helping Indian artists connect with new audiences around the world. Indian pop star Badshah echoed this sentiment, saying Spotify helps artists “reach anyone”.
If Spotify and other platforms can continue to amplify Indian artists globally and improve domestic monetization, India could generate a huge music consumer base and empower its artists in the global scene.
A market on the brink
Clearly, India has the untapped potential to be one of the world’s leading music markets. However, there is still work that needs to be done in order to get there.
Solving challenges around subscription adoption, digital infrastructure, and fair use of AI will be critical. If these can be addressed, India could quickly climb the global rankings as a dominant force within music.