A new report by the Indian Music Industry (IMI) and EY has highlighted the gap between music consumption and paid streaming in India, finding that while music listening is nearly universal among smartphone users, paid subscriptions remain relatively low.
Titled How India Listens, Streams and Pays for Music, the report estimates there were around 14 million paid music subscriptions in India as of December 2025, compared with more than 200 million paid video streaming subscriptions. Based on current industry trends, the report projects India’s paid music subscriber base could grow to 28.8 million by 2028.
The findings are based on a survey of 15,373 smartphone users conducted by research partner RedQuanta during March and April 2026, along with focus group discussions. A separate psychometric study of more than 2,200 smartphone owners was conducted by MindLink.
The survey found that 96% of smartphone users listen to music, with 80% spending more than an hour each daylistening. However, only 38% of respondents said they had ever paid for a music streaming service, including bundled subscriptions, compared with 86% who had paid for a video streaming service.
Digital streaming platforms were the primary destination for music consumption, with 60% of respondents using dedicated music streaming services, while 32% listened through YouTube. The report notes that YouTube remains the largest platform for music discovery, particularly through short-form video, before users move to streaming services for full tracks.
Among respondents who had paid for music, the biggest reasons for subscribing were ad-free listening (44%), the ability to play songs in any order (38%), higher audio quality (36%), and offline downloads (27%).
For those who had never subscribed, the most common reason was that YouTube already provides all the music they need for free (42%). Other barriers included pricing (33%), a lack of interest in premium features (30%), and the perception that there is little difference between free and paid versions of music streaming services (20%).
The report also examined how consumers might respond if free music streaming options disappeared. It found that 61% of respondents said they would be willing to pay, provided pricing remained reasonable and free alternatives were unavailable. The remaining 39% said they would still not subscribe, with 70% of this group saying they would shift to YouTube, 28% indicating they would return to pirated sources, and 21% saying they would stop using music apps altogether.
Bundling continues to play an important role in music subscriptions. Among paid users, 41% paid for subscriptions themselves, 25% were covered under family plans, and 15% accessed music subscriptions through telecom bundles. However, the report notes that while bundling increases usage, it does not necessarily improve consumers’ perception of the standalone value of music streaming services.
Beyond consumer behaviour, the report estimates India’s overall music streaming audience to be between 175 million and 220 million users, although platforms do not publicly disclose subscriber numbers. It also projects long-term market potential of 50 million to 75 million paid music subscriptions, provided the industry continues improving paid offerings, expanding partnerships and bundling, and creating greater differentiation between free and premium services.
To accelerate subscription growth, the report recommends strengthening the distinction between free and paid experiences, positioning music as premium content rather than a utility, integrating music services more closely with live events and creator ecosystems, expanding telecom and OTT bundling, and developing features such as context-aware recommendations, social listening and exclusive content.
