The Royalty Report Card: Did 2026 Bring Better Economics For India's Music Creators?

India’s music royalty ecosystem continued to expand in FY 2025–26, with higher collections and growing revenues from public performance licensing. However, as music consumption scales across streaming platforms, live events and commercial spaces, a larger question remains: is the economic value generated by music reaching the creators behind it?

The latest figures from the Indian Performing Right Society (IPRS) indicate progress. The organisation recorded total royalty collections of Rs 804.5 crore in FY 2025–26, registering an 8.5% increase over the previous financial year. It distributed Rs 628.3 crore to its members during the period, reflecting the continued expansion of India’s royalty collection and distribution ecosystem.

One of the most notable developments was the 48.2% growth in public performance collections, which reached Rs 150.8 crore. The increase points towards improving licensing awareness and compliance, alongside the growing recognition of music’s commercial value across hospitality, retail, commercial establishments and live entertainment.

Commenting on the developments, Rakesh Nigam, CEO, IPRS, says, “India’s music royalty ecosystem has continued to grow, with encouraging developments across multiple revenue streams. One of the most significant developments was the 48.2% growth in public performance collections, which reached Rs 150.8 crore. This reflects improving licensing awareness, stronger compliance and the growing recognition of the value of music in commercial spaces, hospitality, retail and live events.”

However, the growth story comes with another dimension. The CISAC Global Collections Report 2026 puts India’s music collections at €74.4 million in 2025, compared with €80 million in 2024. Nigam points out that currency depreciation is an important factor when interpreting the comparison, adding that the overall development of the royalty ecosystem needs to be assessed beyond individual figures.

Streaming continues to be the largest contributor to music royalties, but industry stakeholders believe that the next phase of growth must extend beyond digital consumption. The challenge is not simply generating more streams or increasing music usage, but ensuring that the value created translates into fair and timely remuneration for authors, composers and publishers.

For Hamza Kazi, Head of Talent and Development at The Hello Group, this distinction is central to understanding the economics of India’s music business.

“The industry has become very good at measuring streams, but we still need to become much better at measuring whether the people who create the music are being paid fairly and transparently. A billion streams may make for a great headline, but for creators, the more important question is: how much of that value actually reaches me, for which rights, and when?” he says.

The gap between consumption and creator remuneration

India’s position as one of the world’s largest music-consuming markets has not automatically translated into equally strong creator economics. Licensing compliance across commercial establishments, hospitality, retail, radio, television and live events remains an area requiring greater attention.

According to Nigam, every commercial use of music must translate into appropriate recognition and remuneration for its creators. This makes licensing compliance a critical part of building a sustainable music industry, particularly as music increasingly becomes an integral part of brand experiences, public spaces and live entertainment.

Beyond licensing, the industry also faces structural challenges around data accuracy and transparency. Incorrect metadata, incomplete registrations, unclear ownership information and delayed usage reports can affect royalty calculations and prevent creators from receiving their rightful earnings.

Kazi believes these gaps need to be addressed through better systems and greater accountability.

“That’s where India still has work to do. In 2027, better metadata, cleaner rights ownership, transparent accounting and faster royalty distribution should be the priority. Creator economics cannot remain a black box,” he says.

The issue also highlights the need for stronger collaboration between collecting societies, digital platforms, broadcasters and music users. Without accurate reporting and transparent accounting, increasing royalty collections alone may not be enough to build confidence among creators.

AI and the next phase of royalty economics

As the industry looks towards 2027, artificial intelligence is emerging as another significant question for music rights and royalty management. The growing use of copyrighted music in AI training technologies, alongside the rise of AI-generated compositions, is bringing issues of consent, ownership and compensation into sharper focus.

Nigam believes transparent frameworks must be established to govern the use of copyrighted works, ensuring that technological progress does not come at the expense of human creativity.

For IPRS, the priorities ahead include strengthening licensing compliance, expanding royalty collections beyond streaming, improving data and distribution systems, and creating greater awareness among creators about their rights.

Ultimately, India’s music royalty story is moving beyond the question of how much music is being consumed to examine how effectively that consumption creates economic value for the people behind it.

The numbers suggest that collections are growing and licensing practices are improving. But the real report card for 2027 will depend on whether this progress translates into greater transparency, stronger accountability and a fairer share of revenue for music creators. Because an industry cannot measure its success by streams and collections alone; it must also measure what finally reaches the people who make the music.