Mumbai: EY has launched the first-ever comprehensive report on the state of the music publishing industry in India titled ‘The music creator economy: The rise of music publishing in India.’ The report aims to provide valuable insights into the current state, market potential, and perspectives surrounding music publishing in the country.
The report estimates that India generates over 20,000 original songs annually, contributed by 40,000 music creators. Music directly or indirectly generates over INR12,000 crore in revenues each year.
Commenting on the survey findings, Ashish Pherwani, EY India Media & Entertainment Leader, said, “Music is an important part of India’s media and entertainment sector and is an important contributor to India’s Soft Power. Both local and international labels have driven the music segment’s sound recording revenues for a long time. However, music publishing revenues remain much smaller, given the differing views on its applicability and litigation.”
The first-of-its-kind survey conducted by EY, in which 500 music creators participated, indicated that their financial income is unpredictable and often limited:
- 87% of respondents would have liked to make a living off their music alone, but only 60% were able to do so
- Working outside of the traditional employer-employee relationship, one-time payments (upfront fees), live performances and royalties were the primary sources of income for most creators
- A majority strongly believed that they needed to learn more about music production and monetization
- Only 56% of respondents had access to the equipment and infrastructure required to produce music
- 35% of respondents reinvested more than 50% of their earnings from music on equipment, gear, software, and other infrastructure required to create music.
- Music publishing revenues in India have grown 2.5x in three years to INR884 crore
- On-call professional fees and live performances were key revenue sources for most lyricists and composers
- Music is an important contributor to the country’s Soft Power.
While India consumes more music per capita than the world average, it ranks 14th in recorded music revenues. In contrast, publishing revenues are ranked 23rd due to various issues like lack of legal clarity and consequently, low compliance.
However, despite these challenges, India’s music publishing industry has grown, reaching INR 884 crore (approx. US$100 million) in the fiscal year 2022-23. The Indian Performing Right Society (IPRS), with over 13,500 authors as its members, continues to expand its revenue, thanks to the support it has received from GOI, as more music users comply with publishing requirements.
70% of Indian music streamed is film music:
Opposed to global music markets which are artist driven, the Indian music market is highly inclined towards film music, with 70%14 of music consumption being film driven and 75-80%15 of recorded music revenue in India being film-based. However, the lack of film releases during the pandemic has given a boost to other music (indie, international, devotional, etc.), which is estimated to contribute 20-25% of total revenues today.
The report also underlined the fact that recorded music revenues have reached INR 2,500 crore in 2022. While sound recording and publishing revenues have grown in India, but are still unable to scale compared to major global markets.