[World music market in the 2020s] Is the Indian market barren? The growth of music streaming

General

India is said to overtake the United States as the world’s largest economy. But that may not be the case when it comes to the music market. The music industry may be overestimating the Indian market. It ranks fifth in the world in terms of nominal GDP, and is said to overtake Japan, the United Kingdom, and China in the future, but the music market is not doing well.

2021 World Nominal GDP Ranking Top 10

When we looked into business data, America came out on top. India is expected to surpass the United States in terms of overseas markets in the future. Although platform penetration and trend formation are necessary, India, with its large population, is a very attractive market for artists. Market trends continue to expand in the digital age. In the industry, the world of media and the web is developing, and expansion is expected.

CountryUnit: million US$
United States22,996,075
China17,744,640
Japan4,932,556
Germany4,262,767
United Kingdom3,187,626
India3,176,296
France2,957,425
Italy2,101,275
Canada1,988,336
Korea1,810,966
Source : IMF

India’s economic growth is tremendous, and it is expected to overtake not only the United Kingdom and Germany, but also China and the United States in the future. This is due to the fact that the investment of Western European countries is also active, and the economic growth is dizzying.

2021 Growth rate of top 10 music market rankings by country

CountryGrowth rate
United States22.6%
Japan9.3%
United Kingdom13.2%
Germany12.6%
France11.8%
China30.4%
Korea21.6%
Canada12.6%
Australia4.1%
Italiy27.8%
Source : IFPI

In contrast, India is not even in the top 10 in the world for the music industry. In countries with economic growth, it is customary for the entertainment industry to develop, but in India, the copper and music industries are in a bad state.

indian music industry

With 1.33 billion people, India has been the hottest potential market in the recording industry in recent times. However, they say that they haven’t seen much of the growth in streaming that they see in the US and Europe. Overall Indian wholesale market rose 18.7% to $181.4 million in 2019. This is largely due to increased streaming revenue from advertising. Only 5.3% of that amount comes from paying subscribers, or just $43.8 million. It was only up $2.2 million from the previous year, derailing its goal of becoming one of the top 10 music markets in the world.

The light and dark of the music streaming industry

The current global music market is dependent on the sales of the streaming music industry. Under such circumstances, the streaming services in the Indian music market are clearly divided into bright and dark.

The struggle between Apple and Spotify

India’s most popular music streaming service is neither Sweden’s Spotify Technology nor America’s Apple. Gaana, a music distribution service that is almost unknown outside of India. Apple Music and Amazon Music have been offering services in India for several years, but it seems that sales have not exploded so much. Spotify and YouTube Music have also launched services in India. But the most popular was Gaana.

Gaana

A music streaming distribution company based in Noida in the Delhi metropolitan area of India. The company is India’s largest streaming service with 152 million monthly users. Analysts say Indian consumers are flocking to the service because it suits them. The library of more than 45 million songs is mainly composed of Indian songs, and it is said that it is possible to listen to more than 20 regional languages. In India, consumption habits differ from region to region, and even from city to city. Gaana understands this, and sales are booming.

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