India's Paid Music Streaming Subscribers Could Reach 30 Million By 2028: EY–IMI Report

India's paid music streaming market is poised for significant growth despite remaining underpenetrated compared to other forms of digital entertainment, according to a new report by EY and the Indian Music Industry (IMI) titled How India Listens, Streams and Pays for Music. The study estimates that the country's paid music subscriber base, which stood at around 14 million in 2025, could nearly double to 28–30 million by 2028, driven by product innovation, strategic partnerships and changing consumer preferences.

Based on a survey of more than 15,000 smartphone users across India, the report examines music consumption habits, subscription behaviour and consumers' willingness to pay for streaming services. It found that music continues to enjoy widespread popularity, with 96% of smartphone users listening to music and 80% spending more than an hour each day consuming audio content.

Despite this high engagement, the report highlights a considerable monetisation gap. While 86% of respondents said they had paid for video OTT services at some point, only 38% reported ever paying for a music streaming service, including bundled subscriptions. According to the report, the easy availability of free music alternatives and limited perceived differences between free and premium services continue to hamper subscription growth.

However, consumer sentiment suggests untapped potential for the sector. The report found that 61% of respondents would be willing to pay for music streaming if free alternatives were no longer available and subscription prices remained reasonable. The remaining 39% indicated they would instead turn to pirated or other unofficial sources for music.

Commenting on the findings, Blaise Fernandes, President, Indian Music Industry (IMI), said, "Art requires more than just inspiration; it requires economic oxygen. To take Indian music global and discover our next generation of talent, we must transition from being a passive consumer market into an active patron's market. Paying for an audio digital subscription is a direct investment by the fan to show support to their favourite performers and also helps in preserving and exporting our rich cultural heritage."

Vikram Mehra, Chairman, IMI, added, "EY-IMI's consumer study validates our belief that the Indian consumer is ready to pay for quality. We look forward to working with our partners, the DSPs, in expanding the audio paid services ecosystem in India. The eventual goal is to get India into the top five music markets in the world."

Sharing EY's perspective, Ashish Pherwani, Partner and Leader, Media & Entertainment Sector, EY India, said the findings reinforce the importance of innovation in driving paid adoption. "Music remains one of India's most consumed forms of digital entertainment. The report highlights an opportunity for the industry to further strengthen subscription adoption through improved consumer awareness, differentiated offerings and innovation that responds to evolving listener preferences," he said.

The report also found that digital service providers (DSPs) remain the preferred destination for music consumption, with 60% of respondents using streaming platforms for listening, compared to 32% who primarily consume music on YouTube. At the same time, short-form video and social media platforms are increasingly influencing music discovery and shaping user engagement with streaming services.

Consumers who subscribe to paid music services cited ad-free listening, playback control and superior audio quality as the key reasons for choosing premium plans. The report concludes that addressing consumer awareness, enhancing premium offerings and creating greater differentiation from free services will be essential to unlocking the next phase of growth for India's music streaming industry.