India's paid music subscriptions may double to 30 million by 2028: EY-IMI report

India's music streaming industry is approaching a critical inflection point. While music consumption is nearly universal, paid subscriptions remain a fraction of the country's video streaming market. A joint report by EY and the Indian Music Industry (IMI) estimates that India's paid music subscriber base could rise from around 14 million in 2025 to 28-30 million by 2028, driven by product innovation, strategic partnerships and evolving consumer preferences.

The report, ‘How India Listens, Streams and Pays for Music’, is based on a survey of more than 15,000 smartphone users and highlights the disconnect between consumption and monetisation. Nearly 96% of smartphone users listen to music, with four out of five spending over an hour every day on audio content, the report says. Yet, only 38% of respondents have ever paid for a music streaming service, compared with 86% who have paid for a video OTT platform. India currently has an estimated 14 million paid music subscriptions against more than 200 million paid video subscriptions, the report says.

The report also suggests that consumer willingness to pay is stronger than current subscription numbers indicate. Around 61% of respondents said they would pay for music if free alternatives were unavailable and pricing remained reasonable, while existing subscribers cited ad-free listening, playback controls and better audio quality as the primary reasons for upgrading.

What will drive the next phase of growth in paid music streaming?

Speaking to Fortune India, Ashish Pherwani, partner and leader, media & entertainment sector at EY India, said the industry has favourable tailwinds that could significantly expand the paid ecosystem over the next few years.

"We estimate that the current number of paid subscriptions could double over the next three years. Smartphone penetration, GDP growth and the shift in consumer behaviour are all moving in the right direction. Younger consumers, especially Gen Z, are far more comfortable with digital payment models and do not carry the same expectation that music should always be free," Pherwani said.

He added that the opportunity extends across the music value chain. "If record labels, streaming platforms and artists work together, this is a generational opportunity where the entire industry can grow."

Industry executives believe the next challenge is not attracting listeners but converting them into paying subscribers.

Jay Mehta, managing director, Universal Music India and South Asia, said the industry's growth will come through a two-pronged strategy—expanding the overall streaming audience and improving conversion from free to paid users.

"The streaming universe will continue to grow as smartphone and data penetration increase. The next step is making it easier for consumers to move into paid subscriptions through bundling, digital payment options and stronger differentiation between free and premium experiences," Mehta told Fortune India.

He added that streaming services have already transformed listening behaviour by significantly improving the user experience. "Consumers today spend over an hour a day listening to music. The more time they spend on these platforms, the greater the likelihood that they eventually become paying subscribers."

For the music industry, subscription growth is also essential to sustaining creators. Blaise Fernandes, president of IMI, said a stronger paid ecosystem would help fund artists while preserving India's musical heritage.

"Art requires more than just inspiration; it requires economic oxygen. Paying for an audio digital subscription is a direct investment by fans in their favourite performers and helps preserve and export India's rich cultural heritage," Fernandes said.

The report notes that dedicated digital service providers remain the preferred destination for structured music listening, with 60% of respondents using streaming platforms, while discovery is increasingly shifting to short-form video and social media. It recommends greater differentiation between free and paid services, innovative premium experiences and stronger bundling strategies to unlock the next phase of growth in India's digital music economy.