Business Remedies | Charu Bhatia | June 22,2025 | India’s music industry is undergoing a major transformation, powered by digital disruption, regional content consumption, and a growing appetite for diverse audio experiences. What was once driven primarily by film soundtracks and radio airplay has evolved into a multifaceted business model generating revenue across streaming platforms, live concerts, brand partnerships, and independent labels. According to the Indian Music Industry (IMI) and IFPI Global Music Report, India ranked 14th globally in recorded music revenues in 2024, climbing steadily with an estimated market value of over Rs. 2,000 crore. With a compound annual growth rate (CAGR) of over 13%, the industry is poised for exponential expansion in the coming years.
Streaming Dominates, But Monetisation Remains a Challenge
Streaming now accounts for more than 85% of recorded music revenues in India, with platforms like Spotify, Gaana, JioSaavn, YouTube Music, and Wynk Music battling for market share. However, the monetisation gap remains wide, most Indian consumers still rely on free, ad-supported models rather than premium subscriptions.
Despite this, the sheer volume of users, over 600 million internet users, many of them mobile-first, makes India one of the most valuable untapped streaming markets in the world. Global labels and homegrown platforms are betting big on regional language content to drive subscriptions in Tier 2 and Tier 3 cities.
The Rise of Indie Artists and Non-Film Music
For decades, Bollywood dictated the soundscape of Indian music. Today, non-film music has carved out its own space, driven by social media virality and creator-first platforms like Instagram Reels, YouTube Shorts, and Moj. Independent artists are leveraging D2C (direct-to-consumer) platforms, fan subscriptions, and digital aggregators to bypass traditional gatekeepers.
Labels such as T-Series, Saregama, and Universal Music India are actively signing non-film talent, investing in niche genres like hip-hop, lo-fi, and regional folk fusion. Collaborations between brands and indie musicians are also opening up new revenue avenues, from branded content to sync licensing.
Live Shows and Music IPs Are Back in Focus
Post-pandemic, the live music economy is rebounding fast. Festivals like NH7 Weekender, Lollapalooza India, and Sunburn are seeing record ticket sales, while artists are monetising performances through tiered pricing, VIP experiences, and merchandise sales. At the same time, music IP and catalogue ownership have become valuable assets. Indian labels are following the global trend of acquiring rights to old and new music catalogs to capitalise on streaming longevity, sync deals, and nostalgia-driven engagement.
What’s Next: AI, Regional Markets, and Global Crossovers
India’s music industry is also witnessing technological innovation, with AI-generated music, voice synthesis, and algorithmic personalisation changing how music is created and consumed. Regional languages, especially Tamil, Telugu, Punjabi, and Bhojpuri, are gaining global traction, with artists increasingly breaking into international playlists and collaborations.
As India’s music economy becomes more diversified, the lines between tech, content, and commerce continue to blur. With digital-first distribution, fan-driven engagement, and IP monetisation at its core, the business of music in India is no longer just about melodies, it’s about smart strategy, scalable platforms, and data-backed creativity.
Written & Edited By:
Charu Bhatia
