The Indian music market’s growing significance is highlighted by the visits of Universal and Warner Music’s global CEOs to the country, signalling their commitment to expanding operations through both organic growth and strategic acquisitions.
Saregama MD Vikram Mehra said that India is poised to become the next major growth market for the music industry. He added that once the merger of two of the largest video platforms, a reference to Disney+ Hotstar and JioCinema, is finalised, the focus for key players will shift to music streaming. “Anyone who tracks the music industry globally understands that subscription service is eventually going to take off in India in a very big fashion-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 transition entirely to paid models, driving India towards a subscription-led growth trajectory.
An EY report has said that the music industry in India generates annual revenues of ?12,000 crore, accounting for approximately 6% of the Indian media and entertainment sector. The report further noted that India produces 20,000 to 25,000 original songs each year, created by over 40,000 music professionals.
The report also highlighted music’s integral role across various media platforms, including streaming, films, television, radio, gaming and social media.
In a recent earnings call, Punit Goenka, CEO of Zee Entertainment, highlighted the profitability and growth potential of the music business, with Zee Music Company focusing on expanding its catalogue and boosting margins. “I think music is one of the key pillars of the segments that we run. I truly believe that going forward music will continue to be a key asset for the company, and we will continue to invest behind it,” Goenka told analysts during the Q2 earnings call on October 18.
Music company Tips Industries CMD Kumar Taurani told analysts that the company is open to acquisitions but currently does not see any viable opportunities. “We don’t have any visibility like that at present, which we can acquire; nothing is available as of now. So we are just waiting, and we have cash. If there is any opportunity, we will grab it, for sure,” Taurani said.
In an earlier interaction with ET, Adam Granite, Universal Music Group’s CEO for Asia, Africa and the Middle East, said the company plans to grow its India business through both organic and inorganic routes. He highlighted that India is expected to enter the top 10 music markets globally in the coming years, up from its current position as the 14th largest music market.
Similarly, Warner Music Group CEO Robert Kyncl told ET that India is one of the top two global expansion markets for Warner Music, alongside China.
