India’s music industry is hitting the right note with investors

MUMBAI: India’s music industry is fast becoming a major growth market for both domestic and global players, with companies in the sector looking to increase their investments, top media executives said, adding that this growth has been fueled by the rise of music streaming Industry revived.

The growing importance of the Indian music market is underlined by the visits of the global CEOs of Universal and Warner Music to the country, highlighting their commitment to expanding operations through both organic growth and strategic acquisitions.

Saregama CEO Vikram Mehra said India is poised to become the next big growth market for the music industry. He added that the focus of key players will shift to music streaming once the merger of two of the largest video platforms, a nod to Disney+ Hotstar and JioCinema, is completed. “Anyone who follows the music industry globally knows that the subscription service in India is going to see a very big rise at some point – give it another 12 to 15 months,” Mehra said.

Mehra noted that currently only two platforms – Spotify and JioSaavn – offer free services. However, he is optimistic that these platforms will eventually fully shift to paid models, which will propel India towards a subscription-based growth trajectory.

According to an EY report, the music industry in India generates an annual revenue of ₹12,000 crore, which accounts for about 6% of India’s media and entertainment sector. The report also noted that India produces 20,000 to 25,000 original songs every year, created by over 40,000 music professionals.

The report also highlighted the integral role of music across various media platforms, including streaming, films, television, radio, gaming and social media.

In a recent earnings call, Zee Entertainment CEO Punit Goenka highlighted the profitability and growth potential of the music business, with Zee Music Company focusing on expanding its catalog and increasing margins. “I think music is one of the cornerstones of the segments we operate. “I strongly believe that music will continue to be an important asset for the company and we will continue to invest behind it,” Goenka told analysts during the second quarter earnings call on October 18.

Kumar Taurani, CMD of music company Tips Industries, told analysts that the company is open to acquisitions but does not currently see any viable opportunities. “Right now we don’t have that kind of visibility to gain; nothing is currently available. So we just wait and we have cash. If there is an opportunity, we will definitely take it.” Taurani said.

In an earlier conversation with ET, Universal Music Group CEO for Asia, Africa and the Middle East Adam Granite said that the company plans to expand its India business through both organic and inorganic routes. He highlighted that India is expected to rise from its current position as the 14th largest music market to the top 10 global music markets in the coming years.

Similarly, Warner Music Group CEO Robert Kyncl told ET that India is one of the two biggest global expansion markets for Warner Music, along with China.