Only 14 million Indians pay for music despite near-universal streaming: EY-IMI report

India may be one of the world's fastest-growing music streaming markets, but only a small fraction of listeners are willing to pay for the experience, according to a new report by EY and the Indian Music Industry (IMI).

The report, How India listens, streams and pays for music, estimates that India had just 14 million paid music subscriptions at the end of 2025, despite nearly 96% of smartphone users listening to music and most spending over an hour a day streaming it.

The findings are based on a survey of more than 15,000 smartphone users, conducted to understand listening habits, payment behaviour and attitudes towards music subscriptions.

The study found that while music consumption is widespread, monetisation remains weak. Only 38% of smartphone users have ever paid for music, compared with 86% who have paid for video streaming services, highlighting a significant gap between the two digital entertainment categories.

Digital streaming platforms dominate listening habits, with 60% of respondents using dedicated music streaming services, while 32% primarily consume music on YouTube. Among paid subscribers, the biggest motivations for subscribing were an ad-free experience and access to premium features.

The report suggests that consumers who do not subscribe often see little difference between paid and free services, with many considering free platforms sufficient for their needs. However, there remains untapped potential. Nearly 61% of non-paying respondents said they would consider paying if free alternatives were unavailable and subscription prices were reasonable.

At the same time, the report warns that 39% of respondents said they would never pay for music. Of these, 70% would switch to free YouTube, while 28% said they would turn to pirated sources if paid services became the only option.

Looking ahead, EY projects India's paid music subscriber base could double to around 28-30 million by 2028, driven by stronger differentiation between free and paid offerings, bundling with telecom and e-commerce services, improved customer experience and new premium features. Industry executives cited in the report believe the long-term opportunity could reach 50-75 million paid subscriptions.

The report argues that India's digital music industry has reached an inflection point where the challenge is no longer driving consumption but convincing listeners to pay for music. It recommends positioning music as premium content, building richer social and creator-led experiences, strengthening bundling strategies and making paid offerings more distinct from free alternatives.

In the foreword, rapper and composer Badshah said music has become more accessible than ever but is increasingly expected to be free, creating a disconnect between consumption and compensation. IMI CEO Blaise Fernandes added that a stronger subscription ecosystem is essential to support creators, labels and the broader music industry, while EY India partner Ashish Pherwani described the current landscape as a "generational opportunity" to reshape how consumers value music.