Subscriptions take off for audio streaming platforms
NEW DELHI : India’s music lovers are flocking to paid subscriptions, after moving from free and pirated music to advertising-led platforms years ago. The change bodes well for audio streaming companies, who had come to rely on advertising for long.
In the audio streaming industry, subscriptions play a vital role, a JioSaavn spokesperson said. “Globally, a significant portion of revenue is generated from subscription services.
In India, we’ve observed a similar trend, with subscriptions contributing about 70% of our revenue, and we anticipate and aim for consistent growth. While video OTTs are increasingly offering free access, audio platforms are exploring strategies to encourage users to subscribe, the spokesperson added.
According to the latest edition of the Digital Music Study brought out by the Indian Music Industry (IMI), the apex body that represents the interest of music companies, revenues of subscription audio streaming platforms grew 25.5% to reach ₹438.7 crore in 2021 from ₹350.1 crore in 2020 and ad-supported audio streaming income—the free tier of services— rose by 17.9% to reach ₹684.6 crore in 2021 from ₹581.6 crore in 2020. The Ficci EY media and entertainment industry report 2023 said that in 2022, music streaming in India had an audience of approximately 208 million of which the paid subscriber base was just around 4 to 5 million.
Factors such as robustness of the content library, exclusivity and originality of content are critical in driving listeners’ willingness to pay, according to Nishanth K.S., co-founder and chief operating officer of Pocket FM, an audio series platform. Over 90% of the company’s revenue comes from monetizing audio series, while about 10% comes from brand solutions and ads, he
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