Daily music streams in India touch 460 million in FY23: Report
The music industry was witnessing 290 million streams per day in FY20 while the covid-19 pandemic in FY21 and FY22 accelerated growth of OTT audio.
PremiumDigital has emerged as a significant contributor to the growth of the music industry in India with daily streams seeing a surge of 1.6 times to reach 460 million in FY23, according to a report by Redseer Strategy Consultants, a tech and data-driven consultancy firm.
Overall, the music industry was witnessing 290 million streams per day in FY20 while the covid-19 pandemic in FY21 and FY22 accelerated growth of OTT audio with over 50 million monthly active users onboarded. Over 60% of streams still come from the top eight metro cities but tier-two towns have seen growing contribution.
Further, vernacular streams have grown the fastest in three years with digital maturity growth in smaller cities and more regional label partnerships. In the last four years, vernacular music has experienced the most rapid growth and accounted for 34% of music streams in FY23. Within vernacular, the South Indian market has witnessed a surge in both user base and engagement in the last two years attributed to the growing number of hit movie releases and high growth in players like Spotify, the report said.
While South Indian languages have grown, Punjabi remains the lead contributor in the vernacular category with a 39% share. Being a leader in ‘entertainment’ genre songs, Punjabi is the highest contributor in OTT audio with non-film genre music. In the last four years, songs of artists like AP Dhillon, and Diljit Dosanjh, have been played not just in the north, but across all states, the report said.
On the subscription revenue front, there has been significant growth compared to ad revenue. In FY23, about 5% of monthly active users were paid with average revenue per user (ARPU) per month ranging from Rs. 60 to Rs. 70.
Further, Swedish streaming service Spotify has successfully established itself as the market leader, capturing 26% of streams in FY23.
“The covid pandemic witnessed during FY21 and FY22, accelerated the growth of OTT audio, adding more than 50 million music listeners, not only from the young age group but also among people above 40 years of age," Ujjwal Chaudhry, partner, Redseer Strategy Consultants said in a statement.
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