Spotify to Pocket FM: How audio apps are staying afloat with flexible pricing

Though the challenge of monetising audio remains tougher than video, it can be eased by offering small packs and exclusive content, experts said.

Over the past few years, music labels in India have grappled with the shutdown of multiple streaming platforms, including Airtel’s Wynk, ByteDance’s Resso and Hungama Music, which failed to crack the paid subscription model.

According to the Ficci EY report, the Indian music industry recorded 192 million free streamers in 2024, compared to 12 million paid streamers.

However, bundled or discounted subscriptions through telecom operators and platform offers have emerged as effective conversion tiers in recent times. Heavy listeners are increasingly opting for premium tiers, which offer enhanced audio quality, an ad-free interface, and exclusive content access.

In podcasts and audiobooks, superfans are willing to pay for early access, bonus episodes and creator-support features, but it is a small and niche group in India.

With more users preferring small purchases instead of big commitments, Spotify, JioSaavn and Pocket FM said they see increasing propensity among listeners to pay.

Globally, nearly 60% of free users eventually upgrade to premium plans, and platforms say India is on a similar, though slow upward trajectory with roughly 5–12% actually paying for music or podcasts as of November 2025, according to streaming platforms and music labels.

“The trend where free access continues to be an important gateway to subscription is consistent in India. As listeners build daily habits around music and podcasts, they naturally seek a more seamless experience, driven by ad-free streaming, higher audio quality, offline downloads, and deeper personalisation," a Spotify spokesperson said.

With its new premium portfolio in India - Premium Lite, Premium Standard, and Premium Platinum – the platform is giving users more flexibility to choose plans that fit their needs and budgets. These plans are priced between ₹139 and ₹299 for a month's subscription.

With multiple UPI payment options, platforms also see growing interest in flexible ‘buy now, pay later’ solutions, especially among younger listeners who prefer convenient, no-upfront-cost payments.

“In general, customers move from a free to paid model when they are offered an experience. They are willing to pay for subscription and premium listening when services deliver value beyond just ‘no ads’ and ‘offline downloads’," a JioSaavn spokesperson said.

They spend more time on apps and feel encouraged to upgrade when the app responds to their habits and personalizes their experience with tools such as playlist recommendations, the person said.

The service that sees a significant preference for UPI- based payments, also runs special offers for students at regular intervals, which start as low as ₹49 per month.

Pay-per-episode

Anurag Sharma, chief financial officer, Pocket FM said Indian listeners gravitate towards payment models that feel flexible and low-risk.

Microtransactions and pay-per-episode formats work best because they match local spending habits and give listeners control over how much they want to spend.

“What really drives conversion is emotional engagement, the moment a listener gets absorbed in a story or show and wants uninterrupted, immediate access to the next episode. Instead of big commitments, users prefer starting with small, low-friction purchases."

Pocket FM episodes can be unlocked with coins, which may cost from ₹29.

The microtransaction model works because it aligns with real consumer behaviour: people are willing to pay small amounts at the exact moment their excitement is highest, making microtransactions a natural and intuitive first step into paid audio, Sharma added.

Charu Malhotra, co-founder and managing director, Primus Partners, a management consultancy firm, said these are growing because they feel “lightweight"; people are more comfortable paying ₹7– ₹25 for a specific feature or short-term experience rather than committing to a full plan.

India’s digital payments culture actually makes this easier; people don’t mind small, frequent payments.

The headwinds

Ranjeet Pratap Singh, co-founder and CEO of Pratilipi, a storytelling platform that runs Pratilipi FM, an audiobook service, said it is very difficult to monetize via ads in India as cost per mille, a pricing model in which an advertiser pays a fixed price for every 1,000 times their ad is shown, are much lower compared to developed countries.

Also, ads generally only work at a very large scale, and there aren’t many audio players operating at the same scale, with hundreds of millions of daily active users. Ad rates and deals can vary between platforms, with prices starting as low as 5 paisa per stream.

“Subscription growth has also been sluggish, as most listeners prefer free, ad-supported tiers and upgrade only when telecom bundles or heavy discounts reduce the price barrier," said Gaurav Dagaonkar, co-founder and CEO of Hoopr, a music licensing platform.

Micropayments and creator-support features are expanding but still contribute marginally to overall revenue. At the same time, music rights, licensing, and technology infrastructure remain costly, putting additional pressure on margins, Dagaonkar said. “As a result, most audio platforms continue to struggle with break-even, a challenge underscored by recent shutdowns such as Hungama Music, Wynk Music, and Resso."

While tiered subscriptions and microtransactions are providing relief, these closures highlight the harsh realities of operating in India’s low-ARPU (average revenue per user) audio market.

According to the Ficci EY report, the Indian music industry's growth declined 2% to reach ₹5,300 crore in 2024.