Music Industry Revenue Surges: Implications for Investors

Music industry - Wikipedia


The Indian music industry generated Rs 12,000 crore in revenue in 2022, a 6% share of the media and entertainment industry. Streaming and broadcast are top contributors. This growth creates opportunities for investors in music, media, and tech.

Analysis for Layman

The Indian music industry earned Rs 12,000 crore last year. Music streaming services like Spotify and Apple Music along with TV and radio broadcasters paid over Rs 10,000 crore. Filmed entertainment like movies and events paid another Rs 2,000 crore. Over 40,000 musicians benefited. Though small compared globally, revenues are projected to rise over 30% by 2024 on increasing demand.

Original Analysis

The growth indicates rising disposable incomes and demand for music amongst India’s young demographics. Increased smartphone and internet access is enabling more streaming subscriptions and consumption. As data prices fall further, more user growth and higher ad revenues will benefit streaming platforms. Broadcasters and studios also stand to gain from music rights and permissions.

Impact on Retail Investors

For retail investors, leading music streamers like Spotify and JioSaavn, media houses like Zee and Sun TV, and telcos like Airtel and Jio with strong music offerings present opportunities. Investors can evaluate companies with large music catalogs, those enabling access, and platforms with ad-monetization potential. Understanding segment growth forecasts and user engagement metrics is key.

Impact on Industries

The music industry feeds into media, entertainment, tech and telecom sectors. As music revenues rise, production houses, studios, and creative talent gain more viability and formalization. Connected industries like concert production, live events, merchandising, and music hardware also benefit. For e-commerce and advertisers, more avenues to target engaged audiences emerge.

Long Term Benefits

Over the long term, formalization of industry copyright frameworks will drive more royalty payouts. Emergence of superstar talent and labels building global fanbases is possible. Wider smartphone and better network reach ensures persistent growth of music subscriptions. Viability of niche genres and streaming platforms increases.

Long Term Negatives

Piracy from illegal sites may persist, limiting growth. Oversupply of low-quality content can erode streaming economics if uncurated. Investment may shift from traditional media to digital unevenly causing job losses. Widening access gap remains a challenge.

Short Term Benefits

In the near term, companies will see top-line growth, more paying users for streaming and bundles, higher ad rates, and trading multiples expand. Funding avenues open up given growth forecasts. Talent promotion and music production increase.

Short Term Negatives

Costs of market expansion and rising content prices weighing on profitability. Rural penetration still low. Recession risks loom amidst global slowdown. Regulatory uncertainties around privacy, piracy persist. Stock volatility from shifting sentiment.


Zee Entertainment, Saregama India, Spotify, Bharti Airtel, Reliance Jio – rising music streaming demand benefits platforms, telcos and content owners.


PVR, Inox Leisure – discretionary spending on concerts may dent movie hall footfalls marginally.

Additional Insights

With falling data costs, smartphone users to expand at 20% CAGR. Music poised to grow at similar rates given linkage. Investors should gauge metrics like stream counts, paying subscribers, catalog breadth, ad revenue per user, talent signups.


India’s music industry entering high growth years akin to its streaming video market earlier. For investors, music provides a structural theme to target across multiple industries.

Source Citation: Farooqui, Javed. “Music Industry Hits a High Note with ₹12k-crore Revenue.” The Economic Tim

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