Why India’s Music Industry Struggles to Stay in Tune Despite Streaming Boom
In an age where global music consumption is surging through digital platforms, the Indian Music Industry finds itself at a curious crossroads. Despite boasting a rich legacy of musical diversity, emotional storytelling, and lyrical depth, the Indian Music Industry is witnessing structural setbacks that go beyond just artistic evolution. While international players enjoy streamlined royalty models and better returns for artists, India’s landscape reveals systemic issues ranging from low payouts to fractured monetization models.
The Indian Music Industry has historically drawn strength from Bollywood, devotional music, and folk traditions. However, as the digital era reshapes listener behavior and revenue patterns, the industry’s legacy-based model has begun to clash with modern business realities. As audiences shift to on-demand and algorithm-driven consumption, the Indian Music Industry must confront both external pressures and internal dysfunctions.
The Indian Music Industry, once dominated by radio and physical media, is now grappling with streaming’s overwhelming dominance. Yet, in this digitized context, a major problem emerges—the lack of equitable structures for revenue-sharing. Music companies benefit, while most artists merely receive visibility without viability. This imbalance weakens morale and dissuades future musicians from dedicating themselves fully to the craft.
Streaming Surge Fails to Translate into Fair Payouts
The growth of digital audio consumption in India is undeniably impressive. Platforms like Spotify, JioSaavn, Wynk, Hungama, and YouTube Music have made access to music easier than ever. According to IFPI’s Global Music Report, India ranked 14th globally in 2024 in terms of recorded music revenues. However, this impressive metric hides a harsh reality—the Indian Music Industry continues to struggle with a sustainable monetization model that benefits both labels and creators.
The streaming model, although accessible to millions of listeners, often fails to compensate artists fairly. According to industry insiders, a majority of the revenue generated flows towards platforms and aggregators, leaving composers, lyricists, and independent artists at the bottom of the revenue pyramid. Subscription rates in India remain lower compared to global averages, further straining the Indian Music Industry’s financial ecosystem.
The Indian Music Industry is also hampered by the micro-royalty system prevalent on streaming platforms. With every stream fetching fractions of a rupee, only the most commercially successful tracks manage to generate substantial income. For emerging artists or niche genres, sustaining a livelihood becomes almost impossible. Without structural change, the Indian Music Industry risks alienating its next generation of talent.
This monetization mismatch becomes even more evident in regional music, where some of the most culturally significant content is being undervalued. Artists from languages outside of Hindi, Tamil, or Punjabi rarely see their work monetized properly. Thus, while streaming boosts accessibility, it often undercuts the value of the Indian Music Industry’s most authentic voices.
Focus Keyword Crisis: “Indian Music Industry” in Subscription Shortfall
The Indian Music Industry has not yet cracked the subscription-based revenue model effectively. Only 1–2% of Indian users pay for music streaming services. In contrast, countries like the United States and the United Kingdom see upwards of 40–50% of users subscribing to premium services. The reliance on advertising revenue in India weakens the financial backbone of the Indian Music Industry, pushing labels to seek other methods of profitability, often at the cost of creative independence.
YouTube remains the largest music consumption platform in the country, but with minimal monetization benefits for artists. Free streaming access disincentivizes the purchase of music or subscriptions, thus harming the revenue potential of the Indian Music Industry in the long run.
This heavy dependence on free platforms has created a culture where consumers rarely consider paying for music. The Indian Music Industry must shift audience mindset by offering superior, ad-free experiences and exclusive content to justify subscription models. Without this pivot, the Indian Music Industry’s financial health will remain fragile.
In Western markets, user experience and community building are used to retain subscribers. The Indian Music Industry should explore similar innovations: fan-funded releases, subscriber-only events, and personalized curation to create value. Unless the Indian Music Industry understands this evolution, it risks lagging behind in global music commerce.
Licensing and Royalty Challenges Undermine Creativity
A deeply problematic area in the Indian Music Industry is its outdated licensing and royalty distribution system. Many music rights are controlled by big labels, leaving artists with little ownership or earning capacity from their creations. Despite organizations like IPRS (Indian Performing Rights Society) trying to reform this structure, loopholes and inconsistencies persist.
Inconsistent enforcement of copyright laws, opaque contracts, and a general lack of industry-wide accountability have created an exploitative ecosystem. This discourages new entrants and leaves many existing artists disillusioned. The Indian Music Industry must address this foundational flaw if it hopes to empower its creative talent and retain credibility.
Notably, royalty collections in India are significantly lower than global averages. According to IPRS data, India’s royalty collection per capita is among the lowest in the world. This directly impacts songwriters, composers, and producers who contribute creatively but lack ownership stakes in their work. Without meaningful reform, the Indian Music Industry will remain artistically constrained.
Further, the Indian Music Industry must prioritize contracts that offer revenue share instead of fixed fees for artists. The latter model devalues long-term returns and sidelines music creators from the industry’s financial growth. A creator-first system is the only path to long-term credibility.
Independent Artists and Regional Voices Struggle for Space
While indie music scenes have gained traction globally, the Indian Music Industry has been slow to support its independent artists. Most playlists on major platforms are still dominated by Bollywood music, leaving very little space for non-film, regional, or experimental music. Regional artists, despite having loyal audiences, often lack the institutional support that Bollywood-affiliated creators receive.
This centralization stifles diversity and innovation, making it harder for unique voices to break through. Without a deliberate shift in platform strategy, the Indian Music Industry will continue to sideline its most vibrant and varied talents.
There is, however, a growing digital rebellion. Artists from states like Punjab, Tamil Nadu, and the Northeast are finding niche audiences through platforms like Instagram, Spotify, and YouTube. Still, without algorithmic support and label investments, these voices rarely reach national recognition. The Indian Music Industry must expand its definition of mainstream to truly reflect the country’s cultural diversity.
Regional festivals, local talent hunts, and folk music preservation programs can help decentralize the Indian Music Industry’s visibility. Incorporating these formats into mainstream promotional calendars will help democratize opportunity and rekindle cultural richness.
Rise of Short-Form Platforms Complicates Revenue Sharing
Short-form video apps like Instagram Reels, YouTube Shorts, and formerly TikTok have become major channels for music discovery in India. While they offer virality, they also present challenges in terms of tracking usage and distributing royalties. The Indian Music Industry’s current infrastructure is not equipped to handle micropayments or real-time monetization that these platforms demand.
Moreover, unauthorized usage and remix culture often lead to copyright violations, further reducing income for original creators. The Indian Music Industry must invest in digital rights management (DRM) systems and transparent distribution channels to harness this wave productively.
Viral music trends have also reshaped how music is composed—many tracks are now created with the intent of becoming 15-second hits rather than full-fledged compositions. This shift compromises musical depth and long-term value, raising serious concerns for the artistic legacy of the Indian Music Industry.
Still, the Indian Music Industry can benefit from these platforms by developing artist collaborations with influencers, enforcing better licensing models, and monetizing music snippets. Doing so can convert virality into viability.
Need for Structural Reform in Indian Music Industry’s Ecosystem
Structural reform is the need of the hour. The Indian Music Industry requires robust legislation that protects creators, clear revenue-sharing models, and a transparent royalty distribution mechanism. India’s legal system still doesn’t enforce many existing rules with the required rigor, allowing industry giants to bypass fair compensation norms.
For the Indian Music Industry to thrive in a globalized music economy, it must learn from more developed markets and adapt rapidly. Stakeholders—be it record labels, streaming platforms, or the government—must work collectively to design frameworks that prioritize the long-term sustainability of music creation.
Education plays a critical role in this transformation. Many creators enter the Indian Music Industry without understanding copyright laws or contract clauses, making them vulnerable to exploitation. Empowering artists with legal literacy and business acumen can change the power dynamics and promote a healthier creative economy.
Above all, transparency must become non-negotiable. Whether it’s streaming royalties, contractual rights, or playlist placement policies, the Indian Music Industry must commit to fairness and openness. Trust must be rebuilt.
Global vs Local: Lessons the Indian Music Industry Can Learn
Internationally, countries like Sweden (home to Spotify) and South Korea (with its K-pop machinery) have created artist-friendly ecosystems through government support, fair licensing practices, and education. The Indian Music Industry could take cues from these models, especially in incentivizing originality and transparency.
Local creators must be empowered not just with better payouts, but also with training, legal knowledge, and marketing resources. The Indian Music Industry can no longer rely solely on its vast audience base; it must build infrastructure that rewards innovation and fairness.
There’s also scope for public-private partnerships. Government grants for musicians, public funding for music education, and industry-led mentorship programs can uplift lesser-known artists and add fresh voices to the Indian Music Industry. The integration of music with digital India’s broader vision can make culture a national asset.
Collaborations with educational institutions can formalize music training, while incubators for emerging artists can bring structure to the independent scene. The Indian Music Industry must view its talent as an investment, not a cost.
Conclusion: Is a Musical Revolution Coming?
Despite its challenges, the Indian Music Industry holds immense potential. With over 700 million internet users, most of whom access audio content daily, the scale for monetization is massive. The growing popularity of regional music, the rise of AI-assisted music creation tools, and the increasing demand for immersive music experiences offer new hope.
But for the Indian Music Industry to realize this potential, it must evolve beyond traditional models. Fair artist treatment, better revenue sharing, technological integration, and institutional accountability are not optional—they are essential.
Streaming platforms must shift from volume metrics to value metrics, rewarding creativity and originality. Labels must adopt transparent policies. Artists must demand their rightful share. Only then can the Indian Music Industry thrive in this golden digital age.
The road ahead is complex, but not impossible. The Indian Music Industry is at a defining moment—either it can embrace reform and reemerge stronger, or continue down a path of stagnation masked by digital volume. The choice will define the next era of Indian music, both locally and globally.
If these issues are met head-on, a revolution in the Indian Music Industry is not only possible—it’s inevitable. The time to act is now.