Paid music streaming hits the right note as free users fade

Mumbai: After a prolonged slowdown triggered by the shutdown of two audio streaming platforms and consumer reluctance to pay for music, India's music streaming industry is seeing a revival, with the number of paid subscribers rising 37% to 14 million in 2025 from 10.5 million in 2024, according to the latest FICCI-EY media and entertainment report.

Affordable subscription plans, bundling deals with telecom operators, closure of some radio stations and rising investments in live events are expected to accelerate growth further. Streamers, music labels, industry experts and independent consultants told ET the paid subscriber base could expand to 50 million to 75 million in the coming years.

Removing free features on their platforms has boosted the paid subscriber base of streamers, sector experts said. Features such as rewinding songs, downloading songs for offline listening, unlimited skipping and selecting a song of one's choice are no longer free on streaming platforms.

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"Cutting down on free features has boosted the paid subscriber base of music audio streamers," said Ashish Pherwani, leader, media and entertainment sector, EY.

Multi-format listener journeys and technology have lifted streamers' paid subscriber base, executives said.

"The growth in paid subscriber base is fuelled by a unique multi-format journey. Fans discover artists through Shorts. Then, they engage with long-form videos, ultimately transitioning to YouTube Music for dedicated listening. This evolution is further accelerated by AI-driven personalisation," said Gunjan Soni, managing director, India, YouTube.

Highly affordable subscription packages have added to the growing paid subscriber base, streamers said.

"Indian listeners have realised the value of ad-free music at a reasonable price," a JioSaavn spokesperson said. In October 2025, JioSaavn launched an annual subscription plan of ₹399, providing access to its full catalogue, ad-free music and unlimited downloads.

In recent years, streamers have also been following a hyper-localised strategy by offering discounted subscription packages, similar to mobile recharge plans, targeting listeners of regional language songs.

"There is a rising demand for high-quality regional content. To support this demand, we have prioritised affordability with the launch of YouTube Premium Lite (₹89 per month) in India. By offering this lower-priced tier, we are making the ad-free experience more accessible," said Soni of YouTube India.

Increasing acceptance of digital payments has also boosted paid subscriber growth, music labels said.

"Improved payment ecosystems have significantly boosted the paid subscriber base. This drives better monetisation and provides deeper engagement with audiences across diverse markets," said Sujal Parekh, business head, Zee Music Company.

Superior audio quality-high fidelity (24-bit lossless) and immersive sound (Dolby Atmos)-as well as support for artists have increased the paid subscriber base, independent music business professionals said.

"Today, listeners pay for superior audio quality. They also show artist loyalty by buying subscriptions," said Aditya Kalia, an independent music consultant.

Lastly, sector experts believe live events will be a crucial differentiator for streamers in the long run, given the limited scope for growth in subscription and advertising revenue.