Mumbai (Maharashtra) [India], July 24 (ANI): Despite music being among the most consumed forms of digital entertainment in India, paid music streaming remains significantly underpenetrated, according to a new report by EY and the Indian Music Industry (IMI), titled 'How India listens, streams and pays for music'.
According to the report by EY and IMI, India had approximately 14 million paid music subscriptions as of December 2025 and projects that the subscriber base could grow to 28-30 million by 2028, driven by product innovation, strategic partnerships and evolving consumer preferences.
Based on a survey of more than 15,000 smartphone users across India, the EY-IMI report explores music consumption behaviour, subscription trends and factors influencing consumers' willingness to pay for music services.
The findings revealed that music engagement in India remains exceptionally strong, with 96% of smartphone users listening to music and four out of five listeners spending more than one hour every day consuming audio content.
Despite this high level of engagement, the EY-IMI report highlighted a significant monetisation gap. While 86% of respondents reported paying for video OTT (Over-the-Top) services at some point, only 38% said they had ever paid for a music streaming service, including bundled subscriptions.
According to the EY-IMI analysis, the widespread availability of free alternatives and limited differentiation between free and premium offerings continue to restrict the growth of paid music subscriptions.
The report also notes that 61% of respondents said they would be willing to pay for streaming music if free alternatives disappeared and pricing remained reasonable. The remaining 39% indicated they would continue to access music through pirated or other sources instead of subscribing.
"Art requires more than just inspiration; it requires economic oxygen. To take Indian music global and discover our next generation of talent, we must transition from being a passive consumer market into active patron's market. Paying for an audio digital subscription is a direct investment by the fan to show support to their favourite performers and also helps in preserving and exporting our rich cultural heritage," Blaise Fernandes, President, Indian Music Industry (IMI) said, according to a press release.
Vikram Mehra, Chairman, IMI said, "EY-IMI's Consumer study validates our belief that Indian consumer is ready to pay for quality. We look forward to working with our partners, the DSPs, in expanding the audio paid services ecosystem in India. The eventual goal is to get India into the top 5 music market of the world".
Commenting on the findings, Ashish Pherwani, Partner and Leader, Media & Entertainment Sector, EY India said music remains one of India's most consumed forms of digital entertainment.
"The report highlights an opportunity for the industry to further strengthen subscription adoption through improved consumer awareness, differentiated offerings and innovation that responds to evolving listener preferences," he said.
The report further notes that dedicated music streaming platforms remain the preferred destination for structured listening experiences, with 60% of respondents using digital service providers (DSPs) for music consumption, compared to 32% on YouTube, while music discovery is increasingly taking place through short-form video and social media platforms. (ANI)
Music discovery is increasingly taking place through short-form video and social media platforms: EY-IMI report
