News

Redseer's FY23 Report: Spotify Leads Audio Streaming Market With 1Mn Streams Every 3 Minutes"

By Loudest Team
April 20, 2023
Redseer's FY23 Report: Spotify Leads Audio Streaming Market With 1Mn Streams Every 3 Minutes"

Digital has emerged as a significant contributor to the growth of the music industry in India and with that people are turning to OTT Audio services such as Spotify, Gaana, Jio Saavan, Resso, Wynk, YouTube Music, Apple Music, and Amazon Music to stream and listen to music. Increased internet penetration, affordable mobile data, and the growing popularity of music as an on-demand entertainment option for consumers have pushed the popularity of OTTA against the traditional music industry. 

Further, the continuous growth in OTTA streams is led by both user and engagement. Over the past three years, the industry has witnessed a surge of ~1.6X in daily streams to reach 460 Mn in FY23.  

“The COVID pandemic witnessed during FY21 and FY22, accelerated the growth of OTTA, adding more than 50Mn music listeners, not only from the young age group but also among the people with more than 40years of age.”, said Ujjwal Chaudhry, Partner, Redseer Strategy Consultants.

  

Vernacular Music Mania:

Going vernacular is the new music buzz in town and with the recent win of Natu Natu's song at the Golden Globe Award and Oscar, the trend is just getting started. Speaking of the OTTA market, vernacular streams have grown the fastest in 3 years with digital maturity growth in smaller cities and more regional label partnerships. In the last four years, vernacular music has experienced the most rapid growth and accounted for 34% of music streams in FY23. Within vernacular, the South Indian market has witnessed a surge in both user base and engagement in the last 2 years attributed to the growing number of blockbuster movie releases and high growth in players like Spotify. 

While South Indian languages have grown, Punjabi remains the lead contributor in the vernacular with a 39% share. Being a leader in ‘entertainment’ genre songs, Punjabi is the highest contributor in OTTA with non-film genre music. In the last 4 years, songs of artists like AP Dhillon, and Diljit Dosanjh, have been played not just in the north, but across all states.   

The Subscription Game:

On the subscription revenue front, there has been significant growth compared to ads revenue. In FY23, about 5% of monthly active users were paid with average revenue per user (ARPU) per month has ranged from INR 60 to INR 70.  

In the last 2-3 years, diversity in the subscription packs has increased (student plans, one-day and one-week packs, etc) which has led to more subscriptions, mostly coming from the top 10 - 12 cities of India.  

Spotify holds the top ranking for Music Streaming platforms:

Over the past three years, Spotify has become a consumer favourite, offering a great product experience and becoming a strong brand. As a Swedish music streaming platform, it has successfully established itself as the market leader, capturing 26% of streams in FY23. It is further noted that the platform has played a crucial role in bringing first-time OTTA users between the ages of 15 to 30 years.    

One of the key strategies that have enabled Spotify to expand its user base is its focus on penetration in Hindi and vernacular languages, beyond just international music. In fact, the platform boasts one of the largest music libraries of Hindi and Vernacular content, and with the strong brand it has built, Spotify was able to get more users across different age groups and user cohorts, pan India. This has undoubtedly contributed to Spotify's continued growth and success. 

Overall, the OTT Audio market has revolutionized and promises significant growth in the coming years.

Related News

Publicis India Names Aman Mannan And Shitu Patil As Joint...

In their new roles, the duo will lead the creative vision for all brands at Publicis India, and report to....

March 28, 2024

Techbank Movies London Introduces Revolutionary 360 VR Experience For A...

This innovative project, realized in collaboration with Techbank Movies London and spearheaded by Adv. Subash George Manuel, sets a new....

March 26, 2024

Wynk Music Rewards Users With Unique Opportunity To Meet Ed...

The meeting was a dream come true for his fans who got to spend time with their favourite artist and....

March 26, 2024

Global Collaboration Alert: Diljit Dosanjh And Saweetie Unveil 'Khutti' -...

This is Saweetie’s first ever collaboration with an Indian artiste and the two global superstars have come together to launch....

March 22, 2024