New Delhi: The Indian music industry grew 24.5% to touch $156 million (Rs. 1,068 crore) in 2018. According to a report released by IFPI, a body representing the recording industry worldwide, India, currently ranked 15th in the world, is well-positioned to break into the top 10 music markets by 2022.
The global recorded music market grew by 9.7% in 2018, the fourth consecutive year of growth, according to IFPI. Figures released in IFPI’s Global Music Report 2019 show total revenues for 2018 were $19.1 billion driven by an uptake in paid subscription streaming (32.9%). The Asia and Australasia region (11.7%) grew to become the second-largest region for combined physical and digital revenue, with especially strong growth in South Korea (17.9%) and India.
Streaming revenue grew by 34.0% and accounted for almost half (47%) of global revenue, driven by a 32.9% increase in paid subscription streaming. There were 255 million users of paid streaming services at the end of 2018, with paid streaming accounting for 37% of total recorded music revenue. Growth in streaming more than offset a 10.1% decline in physical revenue and a 21.2% decline in download revenue.
Mirroring global growth, India has witnessed an increase in streaming revenue (31%) with rising traffic towards legitimate sources of music (audio OTT platforms, video streaming platforms, etc.) driven by an increase in smartphone penetration and low data rates. The penetration of music services to tier two and tier three cities, along with an increasing subscriber base of internet users suggests that the scope for growth for audio streaming consumption (and therefore, revenues) remains large – as emphasized by the increasing competition in the audio OTT industry. Physical revenues, on the other hand, grew only by 21.2% and synchronization revenues by 24.6%.
“Talent, technology and tenacity have been the key drivers of the recorded music industry in India, through the ever changing technological and legislative landscapes. Content creators and owners in India are connecting with audiences globally, through the ubiquity of the Internet and the reach of online platforms," said Blaise Fernandes, president and CEO, Indian Music Industry, in a statement. “The recorded music industry in India is on the cusp of crossing boundaries within India and outside - providing much encouragement to content creators, both established and emerging. It is imperative, therefore, that the investment cycles by rights holders are sustained through fair valuation of music and voluntary licensing norms."