A new report by EY and IMI projects that paid music subscriptions in India will double to 30 million by 2028. While nearly everyone consumes digital music, currently only 14 million users pay for these services, trailing far behind the video streaming market.
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The Indian music streaming industry is entering a phase of potential transformation as it aims to bridge the gap between massive user consumption and actual monetization. According to a recent report titled ‘How India Listens, Streams and Pays for Music’ by EY and the Indian Music Industry, the country is expected to see its paid music subscription base grow from 14 million in 2025 to between 28 million and 30 million by 2028.
While music remains one of the most popular forms of digital entertainment in India, with 96% of surveyed smartphone users engaging with audio content daily, the habit of paying for it remains relatively low. The current data shows that only 38% of music listeners have ever paid for a streaming service. This stands in sharp contrast to the video-on-demand sector, where 86% of users are accustomed to paying for content, supported by a subscriber base of over 200 million.
Analysts note that the primary hurdle for streaming platforms has historically been the consumer perception that digital music should be free. However, research indicates that this mindset is shifting, particularly among younger generations like Gen Z, who show a higher comfort level with digital payments. About 61% of survey participants indicated they would be willing to pay for a music service if free options were removed and the pricing remained accessible. Factors such as ad-free experiences, better playback controls, and higher audio quality continue to be the main drivers for those who do choose to upgrade to premium tiers.
To capture this growth, industry leaders are focusing on multiple strategies to convert free users into paid subscribers. These include bundling music services with other digital offerings, simplifying the payment experience, and increasing overall accessibility through higher smartphone penetration. Unlike the video sector, which has seen rapid monetization, the music industry is still working on refining its value proposition to ensure that the convenience of streaming eventually leads to consistent monthly or annual recurring revenue for platforms.
Beyond the business metrics, the growth of paid subscriptions carries significance for the broader media ecosystem. Executives emphasize that a stronger paid model is essential for the financial health of creators and for promoting Indian music on a global scale. As platforms work to improve conversion rates, investors will be closely monitoring how these companies manage costs related to content licensing and user acquisition, as well as whether bundled services can effectively boost average revenue per user without diluting margins.