The global online music streaming market size reached US$ 18.0 Billion in 2022. Digital emerges as a significant contributor to India’s music industry growth owing to the popularity of OTT Audio services like Spotify, Gaana, Jio Saavn, Resso, Wynk, YouTube Music, Apple Music, and Amazon Music, which allow users to stream and listen to music with ease.
The growing dependency on smartphones, increasing penetration of the internet and the thriving media and entertainment industry are among the key factors stimulating the growth of the online music streaming market, globally and in India.
According to a recent report, the OTT-A industry has experienced a surge of about 1.6X in daily streams over the past three years, reaching 460 million in FY23. This growth was driven by both users and engagement, and the COVID pandemic accelerated this trend, adding more than 50 million music listeners, including those aged 40 and above.
According to Mukesh Kumar, senior engagement manager at Redseer, “We estimate 10 to 11 million subscribers to OTT audio streaming in India, currently. In 2022, JioSaavn had the highest market share of monthly active users.”
International music streams have grown by 11 percent, with most users being between 18 to 30 years old from metro cities, and some are first-time internet users. Although more than 60 percent of streams come from metro cities, Tier 2+ cities have also seen a growing contribution.
Vernacular music is gaining considerable traction, with digital maturity growth in smaller cities and more regional label partnerships. Vernacular streams have grown the fastest in the past three years, accounting for 34 percent of music streams in FY23, with the South Indian market witnessing a surge in both user base and engagement.
Punjabi remains the lead contributor in the vernacular market with a 39 percent share, as it is a leader in the ‘entertainment’ genre songs. Non-film genre music by artists like AP Dhillon and Diljit Dosanjh has been played across all states in the country, not just in the north.
On the subscription revenue front, there has been significant growth compared to ad revenue, with the growth rate of subscription revenue outpacing that of advertising revenue in the last four years. Spotify holds the top ranking for music streaming platforms, capturing 26 percent of streams in FY23, and offering a great product experience, which appeals to users in different age groups and user cohorts, pan India.
Spotify’s focus on penetration in Hindi and vernacular languages has helped it expand its user base, with one of the largest music libraries of Hindi and Vernacular content. Subscription packs like student plans, one-day and one-week packs have led to more subscriptions, mostly coming from the top 10 to 12 cities of India.
Overall, the OTT Audio market has revolutionized India’s music industry and promises significant growth in the coming years.
