India is expected to be the biggest growth market for the music industry over the next few years with huge audience, love for technology and unique demand for music.
Music streaming has transformed the way we listen to music over the past two decades. Services like Spotify and Apple Music have become the primary source of music for listeners around the world, and streaming now accounts for 62.1% of total worldwide recorded music revenue.
While these streaming platforms have established themselves deeply in our lives across much of the Western world, it is only in recent years that parts of Asia have caught up with the love for streaming services. digital music. The music industry now looks to the huge Indian audience as the culmination of music streaming growth over the next few years, as enthusiastic listeners boost their music revenues from digital services after hitting a low in 2015.
After years of gradually declining revenues for the recording industry in India, they reached $ 91.6 million in 2015. The Indian music industry was following the same trend that countries all over the world faced in the beginning. of the new millennium with the omnipresence of the Internet. -demanding music from the masses by pirating. Music streaming services became the answer, providing cheap (or free) access to an almost unlimited library of world music – which in fact paid artists.
Now streaming is taking off in India and has revitalized their music economy, following the explosion in internet usage in the mid-2010s. India’s native streaming services Gaana, JioMusic and Saavn have experienced significant growth in their number of users and the last two platforms joined forces to become JioSaavn in 2018 with over 100 million users to date.
Many foreigners like Spotify have only stepped into the country in recent years, and although they are experiencing healthy growth, they only attract a fraction of users from local platforms. However, YouTube is a huge presence in India with 245 million Indian visitors every month in 2018, reaching over 80% of their users online. Industry insiders predict that the global streaming user base in India will reach 500 million in the next few years.
With annual growth since 2015, the recording industry revenue in India increased 210% to reach $ 153.1 million in 2018, of which 69% was generated by music streaming. With half a decade of lightning-fast streaming service usage for the country, it shows no signs of slowing down, with the first half of 2020 seeing 40% year-over-year growth in viewing to the services. music streaming.
With music streaming exploding in India and services from beyond Asia trying to enter the market there, audiences are not quite the same in India as they are elsewhere. of the world. While streaming music is experiencing a huge increase, it is not the immediate availability of popular music from around the world that is attracting listeners.
Indian listeners are unique in that around 80% of their streams are from film scores, such as Bollywood soundtracks. International studio artists represent only a minority of digital service streams in the country. This means that – at least currently – the demand for digital music in India, while increasingly popular, is highly insular in the content they seek.
This undoubtedly works in favor of local streaming services like Gaana and JioSaavn, which are able to easily strike deals with film studios across the country and license film music for streaming. However, it is likely that the availability of non-cinematic music on these large on-demand services will bring about a cultural shift away from the sole dominance of film music in the recorded music industry in India.
President of the commercial body Indian Music Industry and Managing Director of Indian label Saregama, Vikram Mehra said: “[For the first] time [since the 1990s], we see enough attention from the label side and enough customer interest in non-cinematic music. The labels in India focus on regional language music, for all the many regions of the country. Without a doubt, international acts will also reach a wider audience thanks to their new availability.
As tastes diverge and the user base grows each year, India is expected to have a huge mark in global streaming growth over the next decade as the massive growth of the past decade slows in markets like the United States and Europe, streaming having reached the majority of audiences likely to capture it.
It also has a lot of potential to reinvigorate music revenues for the country much more than it has in recent years. India is currently the top country in the world for hacking with recent surveys suggesting that 76% of internet users have used hacking services in the past 3 months. With 94% of online consumers listening to music in India, the digital music audience is already here and converting more and more users away from piracy will see the huge user base on the services insiders predict. .