The music creator economy in India clocked significant growth in 2022. According to the latest report by Ernst & Young (EY), the space generated an estimated revenue of Rs 12000 crore. This amount constitutes approximately six percent of the Indian Media & Entertainment industry.
The breakdown of the revenue reveals that digital platforms played a significant role, contributing Rs 5692 crore, while broadcast platforms added another Rs 4350 crore. Filmed entertainment, including film music, contributed Rs 1200 crore, and concerts and events accounted for Rs 805 crore.
An interesting highlight of the report is the growth of publishing revenues, which have surged 2.5 times in the past three years to touch Rs 884 crore. The report projects that publishing revenues have the potential to double by 2026-27.
As per EY analysis, music is a crucial component of various mediums.
“Music forms an integral element of over 1,000 films released each year whether as on-screen songs, background scores, sound effects etc. In addition, it is also an important portion of several events including weddings, corporate events, sporting events, product launches, etc. Audio-visual content drives over 70 percent of data consumption and is a key contributor to telcos’ data revenues,” said the report.
Interestingly, digital platforms have emerged as a dominant force in the music creator economy. The EY report said, it contributed to 47 percent of the total revenue generated by music.
“Having a digital platform for music gives the opportunity to aspiring artists to be discovered. Artists have more freedom in navigating their career and being in control of their own music. You can write, perform, produce without depending or have the fear of being shelved/unnoticed by major Labels. You get a broader spectrum of audience all around the world who would listen to you,” said Shannon K, American-Indian Singer/Actress.
The Indian music market, unlike global trends, is heavily driven by film music, constituting 70 percent of music consumption and 75-80 percent of recorded music revenue.
However, there are some emerging trends as well. The impact of the pandemic has led to a shift in consumption patterns, with non-film music genres, including indie, international, and devotional music, contributing 20-25 percent of total revenues.
In global comparisons, India showcased a robust music consumption culture, ranking 14th in recorded music revenues per capita. However, challenges in the publishing sector, such as legal clarity and compliance issues, have hindered its growth, positioning India at 23rd globally. India surpassed China’s rank in global publishing revenue in 2022.
The report also anticipates positive momentum in publishing revenue collection due to settlements with the Indian Performing Right Society (IPRS) and licensing deals with global platforms like Spotify and Apple.