(Music streaming trends)

The success of the over the top (OTT) industry in India has caused a considerable stir in the Indian
music streaming segment. India being the second biggest market for smartphones along with the fact
that data rates are among the cheapest in the world has contributed immensely to the growth in music
consumption. At an average of 21.58 hours of listening to music every week as compared to the global
average of 17.89 hours per week, India happens to be the biggest consumer of audio content in the
world.

Global streaming services have penetrated the market with Spotify and Google-owned YouTube Music
earlier last year. The new entrants faced stiff competition from existent global services such Apple
Music and Amazon music as well as local players like Gaana, JioSaavn, Hungama and Wynk Music
which enjoy a prominent share of the market in India. However, despite there being so many global and
local choices, a majority of the people still stick to good old Youtube to listen to music for two main
reasons – familiarity and being able to watch videos synced with the music.

Indian users are wary of commitment. According to Deloitte and IMI, only about 150 million which is
a mere 11 percent of our population of 1.34 billion, subscribe to a music streaming app. Of this 150
million, less than 1 percent of users have a paid subscription. Keeping this in mind, global services are
focusing on making subscription prices as minimal as possible and providing more free features than
the rest of the world. Services can be seen building an extensive local library to cater to the Indian
demand for localisation.

While Spotify relies on data analytics and its trademark playlists, YouTube Music is refining its
recommendation engine and machine learning capabilities. The earlier established services see a
considerable amount of loyalty as Indians have grown accustomed to their user experience. So, while
people appreciate the growing number of services in terms of available alternatives, they are not quite
comfortable with the idea of replacement. India also sees a piracy level of 67 percent as opposed to the
global average of 27 percent, which poses a considerable threat to the music streaming sector.

However, revenue is expected to show an annual growth rate of 8.3 percent by 2024 and services
worldwide have already recognized the potential held by the slow but giant Indian market. One can
only expect a steady rise in the number of users and possibly the number of streaming services, as India
becomes more digital and on the go.