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Digital-Music-Study-Report-2022-c-Final

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DIGITAL MUSIC STUDY 2022

THE ALL-PERVASIVE
POWER OF MUSIC
Boosting Well-being, Redefining Formats
& Shaping Engagement
LIVE
DIGITAL MUSIC STUDY 2022

CONTENTS
4 FOREWORD-BLAISE FERNANDES, PRESIDENT & CEO, IMI
6 FOREWORD- DAVID PRICE, DIRECTOR OF INSIGHT AND ANALYSIS, IFPI
8 INDIA: MARKET OVERVIEW
10 INDIA: MUSIC OVERVIEW
11 RESEARCH METHODOLOGY, EXECUTIVE RESEARCH & KEY INSIGHTS

13 IN FOCUS
14 FIT AS A FIDDLE: THE MENTAL AND PHYSICAL BENEFITS OF MUSIC
15 THE STEADY DOMINANCE OF SHORT FORM VIDEO APPS (SFVA'S)
17 AUDIO STREAMING: INTERNATIONAL SERVICES TAKE LEAD OVER DOMESTIC SERVICES
19 THE STEADY BEAT OF THE RADIO
20 LIVE STREAMING: JURY'S STILL OUT

21 GENERAL TRENDS
22 MUSIC LISTENING IN INDIA: STREAMING GETS THE LION'S SHARE
23 GENRES: A CLEAN SWEEP FOR BOLLYWOOD, CLASSICS STILL A HOT GENRE
24 MUSIC DISCOVERY LANDSCAPE
25 GAMING, TV SHOWS AND FILMS: THE MUSIC EXPERIENCE

26 DIGITAL PIRACY
27 THE ENDLESS BATTLE WITH DIGITAL PIRACY
34 CONCLUSION

3
DIGITAL MUSIC STUDY 2022

FOREWORD

MUSIC
A Way of Life and a Lifestyle in India
towards a subscription model. But 73% of respondents
stating that they use unlicensed sources as a way to
consume music, also known as music piracy, is a red flag for
the entire ecosystems of performers, songwriters and
lyricists, music publishers and copyright owners as “piracy
has wrecked the industry before” and if not curbed, can be
the wrecking ball kneecapping the whole sector. The
Government of India and the state governments also have
reason to be concerned about music piracy. Besides losses
to the exchequer, an ICRIER study states that around 1.4
crore people earn a livelihood from music in the
Mr. Blaise Fernandes unorganised sector, which is the economic side of concern.
President and CEO, IMI There is a cybersecurity angle to the consumption of music
through pirated sources, with global studies proving that
The Digital Music Study was conducted by malware is transferred through these pirated sites and that
the IFPI and IMI in 2022 across 4000 the free availability of copyright-protected content is the
respondents all over India. This is a yearly “honey pot” that attracts the unsuspecting consumer.
exercise. The findings in the recent study Given that we are witnessing growth in smartphones,
are a mixed bag for the stakeholders. increased broadband penetration and mobile data prices
Music as a way of life comes out very still one of the cheapest in the world, if piracy is not curbed,
clearly as audiences in India listen to we are sitting on a ticking time bomb. The need of the hour
music for an average of 25.7 hours a is the formation of an inter-ministerial committee
week, above the global average of 20.1 comprising representatives from MHA, DPIIT, MEITY, MIB, and
hours a week. That is a great catchment Law alongside representatives from the Media and
for monetisation when DSPs move Entertainment industry to address the piracy issue.

4
DIGITAL MUSIC STUDY 2022

Music as a lifestyle enhancing mental health again comes out strongly in


this year's findings but given the fact that covid curbs have been lifted and
gyms, parks and jogging tracks are now open, music is also a part of physical
well-being, a fact that comes to the fore in this report. In the lifestyle
segment peculiar to India is Music and Yoga. India reported the highest
proportion of people who engaged with music while doing yoga (48%),
more than thrice the global average of 13%. Music during YOGA sessions was
a fascinating element in the findings. The patterns of music consumption in
India are in line with global trends with people using various formats such as
paid streaming, ad-tier streaming, video streaming, short-form video, social
media, radio, purchased music, live, and others to engage with music. Music
is still the high-octane fuel propelling the radio industry to heights.
Hopefully, regulators and the judiciary will acknowledge this fact and have
policies that unlock the value of music to stakeholders across the industry.
We are hopeful that the long pending suggestion of the industry 'Take Down
Means Stay Down' is addressed in the proposed Digital India Act. This will be
the kicker to unlocking value from Short Form Video Apps for the whole
ecosystem. Lastly, the industry and DSPs also need to consider the pricing of
their offerings as “the price factor” is a deterrent for the consumer to shift to
a paid ecosystem.
Though the role of record labels in the growth of the music industry has
always been invisible to the consumer, the investments made by them in the
music ecosystem are the fuel that drives the industry. The report
encapsulates the all-pervasive power of music: boosting well-being,
redefining formats and shaping engagement. The various technological
advancements and increasing digital penetration augur well for the whole
ecosystem to flourish at a faster pace and are certain to contribute to
unlocking its undeniably immense potential.

5
DIGITAL MUSIC STUDY 2022

FOREWORD Let's begin by looking at the high levels of engagement


with the enormous range of music produced by Indian
artists. Overall, 70% of all music listening time was spent
on music from domestic artists: Arijit Singh, Neha Kakkar,
Badshah, Shreya Ghoshal, and so many other new and
established artists. This was one of the highest levels of
domestic music listening worldwide, behind only China
(72%) and the US (76%) and considerably over the
global average of 49%.
Record company support and investment in Indian
artists throughout the country has helped them to
realise their vision and bring new music to their fans.
Indian music genres were also the most popular in the
country. As ever, Bollywood music was dominant: two-
David Price
Director of Insight and Analysis, IFPI thirds (66%) said they listened to music from one or
more Bollywood eras. Affection for Bollywood was
spread across the decade's worth of available music,
IFPI's Music Consumer Study 2022 – the largest across all age groups, and within those speaking all of
music-focused consumer research project in the the main Indian languages. But beyond Bollywood,
world – shows many positive trends within the Indian hip-hop, Punjabi music, Indian pop music,
Indian music landscape. Some of these are traditional Indian music, and music in Tamil, Telugu, and
discussed in detail within this report. To pick a few: Malayalam – to name but a few languages – were also
music listening time was up by over 17% compared often cited as favourite genres. Indian hip-hop and rap
to 2021, demonstrating the importance of were more popular than hip-hop and rap from outside
recorded music in people's lives; listening through the country, demonstrating the ways in which local hip-
audio streaming services also rose quickly as hop artists have developed their own unique sound and
people increasingly found the value in dedicated outlook that appeals to listeners across India.
music platforms; and engagement with music It is not just the styles and languages of music where
through livestreams or virtual concerts in gaming India has a clear influence. Many of the platforms used
worlds increased rapidly, showcasing new to engage with music in India are also created and
methods for music to reach audiences. developed in the country, unlike almost all other
I'd like to focus on two key areas explored in the markets where international services and networks
study: first, the influence of India itself – not just dominate. Music streaming platforms like Gaana,
in the choice of music but also in the methods used JioSaavn, Wynk, and Hungama which focus on Indian
to engage with that music; and second, the content compete in a crowded market with services like
enormous diversity of choice now available to Spotify, Amazon Music, and YouTube's own dedicated
music listeners in the country. music service, YouTube Music. No other country has such

6
DIGITAL MUSIC STUDY 2022

a mix of available streaming platforms – all of To give a better sense of what that means: the
which offer a free, ad-supported tier as well as same person might watch a Badshaah music
premium tiers offering uninterrupted listening – video on YouTube; queue up a Punjabi pop
from which listeners can choose. However, the playlist on Gaana; catch a classic song from Asha
MCS found that the reasons why people decide to Bhosle on the radio; on Facebook, post a video of
pay for a streaming service tended to be the their favourite India's Got Talent performance;
same whichever one is chosen: access to the get themselves in the mood using a high bpm
millions of songs licensed to each platform and exercise playlist at the gym; watch a new
the ability to listen on-demand and without Bollywood film at the cinema or on Hotstar; try
advertisements. Also, the MCS found that when and copy a dance for a popular Tamil music track
people choose content on streaming services, on Moj; buy an old vinyl album from New
they tend to select songs themselves or listen to Gramophone House; participate in a virtual
their own playlists more often than they are concert on Fortnite; and listen to a podcast about
guided to music by the platforms themselves. a favourite music artist or album.
Similarly, in the short-form video space, the Ultimately, this report captures the love and
absence of TikTok in India has left a space where passion Indian fans have for music in this country.
Indian-made networks like MX Taka Tak, Moj, They are engaging extensively with the rich and
Josh, Chingari, and others can provide a new and diverse music available to them across a wide
different way to experience and engage with range of formats, platforms and genres. At the
music. Again, it is recorded music fuelling and heart of this is the work and investment from
driving engagement on such apps: 63% of videos record companies who are partnering with
watched had music as a central focus. Indian artists and supporting them in creating
Record labels have worked extensively to license music and connecting with fans. This relationship
music to as many platforms and services as is powering Indian music and ensures that it will
possible. Consequently, the diversity of choice continue to play a crucial part in people's lives.
now available to music listeners, and the ways in
which those in India take advantage of this
choice, is extensive. On average, each Indian
respondent in the Music Consumer Study listened
to, watched, consumed, created, or otherwise
engaged with music in ten different ways in a
typical month.

7
DIGITAL MUSIC STUDY 2022

INDIA
MARKET OVERVIEW
Ranks (2021)

16 13 38 38 7

STREAMING DOWNLOAD & PHYSICAL PERFORMANCE SYNCHRONISATION


OTHER DIGITAL RIGHTS

Recorded Music Revenues by Sector


Streaming – 86.90%
Synchronisation - 5.40%
Performance Rights – 3.80%
Download & Other Digital – 2.60%
Physical – 1.40%

Figure 1: Streaming dominated the majority of the recorded music revenues (86.90%) followed by Sync (5.4%) and Performance Rights (3.8%)

8
8
DIGITAL MUSIC STUDY 2022

INDIA
MARKET OVERVIEW
Revenues (2021)

TOTAL INR 1620 Cr.

Physical INR 22 Cr. (1.4%)

Streaming INR 1408 Cr. (86.9%)

Other Digital INR 43 Cr. (2.6%)

Performance Rights INR 61 Cr. (3.8%)

Synchronisation INR 86 Cr. (5.4%)

In 2021 streaming revenue showed a 22.5% growth accounting


for 86.9 % of overall revenues, downloads and digital sales
accounted for 2.6% of total revenues.

Subscription audio streaming revenues grew by (+25.5% ) to


reach INR 438.7 Cr. ($53.3 mn USD) in 2021 from INR 350.1 Cr.
($42.5 mn) in 2020 and ad-supported audio streaming income –
the free tier of services– rose by (+17.9%) to reach INR 684.6
($83.2 mn USD) in 2021 from INR 581.6 Cr. ($70.6 mn) in 2020.

Video streaming revenues in 2021 were INR 443.2 Cr. ($53.8 mn),
27.2% of total streaming revenues.

8
9
DIGITAL MUSIC STUDY 2022

LIVE

LIKE

REC

REC

INDIA
MUSIC OVERVIEW
67%
of people say music
75%
of people say music is
93%
said they used some
is important to important when they kind of audio
their mental health exercise streaming services

&
of people said they

73% 71%
listened to the radio
mainly for the music

8+
use unlicensed ways to discovered new music
listen to or obtain music at least once a week

different genres of
music on an average

65%
used short form 10+ 70%
time spent listening to
video apps different methods artists from India
used by people to
engage with music
on an average

25.7% 54% 44.5%


hours spent listening
watched a music
used paid audio
live-stream in the
to music each week streaming services
preceding month

9
10
DIGITAL MUSIC STUDY 2022

RESEARCH METHODOLOGY, EXECUTIVE RESEARCH


& KEY INSIGHTS

RESEARCH METHODOLOGY
This report analyses findings and insights with respect to music consumption in India based on the IFPI Music
Consumer Study conducted in 2022. The key findings of the study were published in IFPI's Engaging with Music
Report 2022, which explores the ways in which people discovered, listened to and engaged with music in 22
countries. Globally, 44,000 internet users were surveyed within the 16-64 age group with higher numbers of
respondents in larger markets. In India, the study covered 4,000 internet users aged 16-44. The IFPI study was
designed, scripted and analyzed by IFPI's Insight and Analysis team. Strict gender, age, and regional quotas were set
to ensure statistically and demographically representative samples of the online population in each country in
accordance with the latest census data. Fieldwork was carried out in July and August 2022 by AudienceNet.

EXECUTIVE RESEARCH
Several factors are responsible for the strong digital environment in India which has been instrumental in increasing
engagement with music. With a population of 1.4 billion, India has the tailwinds that can further boost consumption
and engagement with music.
LOW-COST MOBILE DATA: The average cost of 1GB of mobile data in India is US$ 0.17 (approx. INR 14) (one of the
cheapest rates in the world) as compared to the global average cost of US$ 3.12 (approx. INR 257).¹
INCREASING INTERNET PENETRATION: As per TRAI data, there are a total of 834² million internet subscribers in India.³
AVAILABILITY OF CHEAP SMARTPHONES: The average price of a smartphone in India was $196 (approx. INR 16,126)
in 2021.⁴
INCREASING SMARTPHONE PENETRATION: India had 750 million smartphone users in 2021 and this number is
projected to reach 1 billion by 2026.⁵
RISE OF THE 'DIGITAL NATIVES': In 2030, 77% of India's population will comprise Millennials and Generation Z.⁶
Termed as the 'digital natives', they are key drivers of digital consumption.
THE INCEPTION OF 5G: 5G services were launched in October 2022⁷ in India in select cities and are expected to
expand all over India in the next few years.⁸

¹ https://www.cable.co.uk/mobiles/worldwide-data-pricing/
² https://www.trai.gov.in/sites/default/files/PR_No.02of2022.pdf
³ https://indianexpress.com/article/technology/tech-news-technology/india-has-more-than-800-million-broadband-users-says-rajeev-chandrasekhar/
⁴ https://www.statista.com/statistics/809351/india-smartphone-average-selling-price/
⁵ https://www2.deloitte.com/content/dam/Deloitte/in/Documents/technology-media-telecommunications/in-TMT-predictions-2022-noexp.pdf
⁶ https://www3.weforum.org/docs/WEF_Future_of_Consumption_Fast-Growth_Consumers_markets_India_report_2019.pdf
⁷ https://pib.gov.in/PressReleasePage.aspx?PRID=1864246
⁸ https://economictimes.indiatimes.com/news/new-updates/5g-services-starts-in-india-here-are-plans-cities-list-and-how-to-enjoy-5g-services-in-your-
phone/articleshow/94599511.cms?from=mdr

11
DIGITAL MUSIC STUDY 2022

KEY INSIGHTS

1. Music had an increasingly important role to play in the radio listeners said that if the radio were to no
the physical and mental wellness of listeners. 67% longer play music, they would look for music
of the surveyed listeners in India said that music elsewhere.
was crucial for maintaining their mental health 5. On average, people in India use over 10 different
while 75% said that music is important when they methods to engage with music the top ones being
exercise using it to soundtrack their chosen form of audio streaming, video streaming, short-form
physical activity, the top three being walking, yoga video services, social media, purchased music, live
and running. India reported the highest proportion music, even pirated music and other methods.
of people who engaged with music while doing
yoga at 48%, more than thrice the global average 53.9% of all the respondents said that they had
of 13%. enjoyed a music live stream.

2. The hours of music listening in 2022 saw an 68% of gamers had watched a virtual music
increase of 3.8 hours, an uptick of 17.2% compared concert on a gaming platform such as Fortnite,
to 2021 and streaming accounted for the biggest Roblox, etc.
share (26%) of music listening. An average listener 65% of the respondents said that they use short-
spent 6.7 hours a week listening to music on audio form video apps (such as Mx Taka Tak, Moj, Josh
streaming services (both paid and ad-supported). etc) and social media platforms with a short
Further, music consumed through paid audio form video element (such as YouTube Shorts,
streaming increased from 3.3 hours a week in 2021 Instagram, keeping up with the continued
to 4.3 hours a week in 2022 with consumption popularity of short-form services in India.
being highest among 25-34-year-olds.
6. India demonstrated one of the highest levels of
3. While the use of overall music streaming services domestic music listening with almost 70% of the
was the highest in the youngest age group respondents listening to artists of their own
surveyed (16-24) at 93.9%, the group showed the country. Further, of the top ten favourite genres of
lowest rate in the use of paid tier of music music, half were associated with Bollywood,
streaming (36.8%), reasons being the presence of reiterating the importance of film music in India.
YouTube and the cost of subscription services which
7. The digital music piracy rate in India (73%)
they find too expensive. The use of the paid tier of
continued to be higher than the global music piracy
music streaming services is the highest among the
rate of 30%, with the rate being higher in the 25-34
25-34 age group (52.4%) who are more likely to
age group. Stream ripping remained the key
pay to listen to music without interruption and
method for music piracy, especially among the 16-
have access to millions of songs.
24-year-olds who preferred it for its ease of use.
4. Radio consumption remained steady with its use Digital music piracy remains a pressing issue and
being higher among the 35-44 age group. Music must be addressed by effective policy measures.
was regarded as central to all radio listenership
with 62% of respondents accepting that they
wouldn't listen to the radio if not for music. 87% of

11
12
IN FOCUS
DIGITAL MUSIC STUDY 2022

Fit as a Fiddle
The Mental and Physical Benefits of Music
Music is a powerful tool that influences and connects
human beings. It has an impact not only on one's mood
but also their mind, body and overall health. Music has PERCENT ENGAGING IN
been proven to improve focus, alleviate stress, EXERCISE/WELLNESS ACTIVITY
strengthen learning and boost physical activity.
Just like music helped people ease into an WALKING 58.6%
unprecedented period of great difficulty during the
YOGA 48.3%
pandemic, this year too, the report highlights the role of
music in boosting listeners' mental and physical well- RUNNING 41.2%
being. As per the study, 67% of the surveyed MEDITATION 35.1%
respondents in India say that music is crucial for
maintaining their mental health. This is evidently true CYCLING 30.9%

for paid subscribers of streaming services, 69% of whom MASSAGE 14.2%


agree that music is important to their mental health.
The percentage of millennials (Gen Y) in India that
agree that music is intrinsic to their mental well-being
MINDFULNESS

REFLEXOLOGY 5.5%
11.8%
48%
India reported the
is slightly higher, standing at 72%. The corresponding highest proportion who
PILATES engaged in yoga,
4.4%
percentage among women in India is 70%. far above the global
average of 13%
Music now plays an increasingly important role in CALLENETICS 3.8%

people's physical fitness journeys. By soundtracking and


motivating physical activity, music helps people set
their pace and stay on track. Platforms now offer
dedicated playlists meant to be consumed by people
while indulging in their choice of physical activity.
Nearly 75% of people surveyed in India say music is
important when they exercise. People use music to
soundtrack their chosen physical activity with walking
(58.6%), yoga (48.3%) and running (41.2%) being the
top three activities listeners engage in. India reported
the highest proportion of people who engaged with
music while doing yoga (48%), more than thrice the
global average of 13%. While engaged in their choice of Figure 2: People use music to soundtrack physical activities the top
physical activity, the majority preferred listening to their three being walking (58.6%), yoga (48.3%) and running
(41.2%). India had the highest proportion of people who
own music. Music is therefore a key factor influencing engaged with yoga while listening to music, far above the
the mental and physical well-being of its listeners. global average of 13%.

13
11
14
DIGITAL MUSIC STUDY 2022

The Steady Dominance of


Short Form Video Apps (SFVA's)
The short-form video segment in India has seen phenomenal growth over the last few years.
The pandemic had people locked up in their homes with limited avenues of entertainment
which only contributed to increased use of short-form video apps. This trend has continued
steadily into 2022. With attention spans shrinking and the growing penetration of the
internet and smartphones, the reach of short-form video services is only expected to expand
in the years to come. After the ban imposed on TikTok in India, various Indian apps rose to fill
up the newly vacated space in the Indian short form video market. According to estimates,
the number of users of short-form video apps is expected to grow to 650 million by the year
2025.⁹ The share of short form videos in music engagement in India is 15%, nearly double of
its corresponding share in global music engagement (8.1%).

Share of Short Form Video in Share of short form video in


Global Music Engagement in 2022 Music Engagement in India

Short Form Video - 8.10 % Short Form Video - 15 %


Figure 4: The share of short form videos in music
Figure 3: The share of short form video in global music engagement in India was 15%, nearly double its
engagement was 8.10% share in global music engagement

⁹ https://redseer.com/insights

13
15
DIGITAL MUSIC STUDY 2022

65% of the respondents said that they use SFVA's (such as Mx Taka Tak, Moj, Josh etc)
and social media platforms with a short form video element (such as YouTube Shorts,
Instagram Reels and Snapchat), which is significantly higher than the corresponding
global percentage of 49.8%. Among the different short-form video apps employed in
India, the two most popular apps were Mx Taka Tak and Moj, with their users most
likely to fall in the 25+ age group. YouTube Shorts (77.5%) and Instagram Reels
(73.9%) were the top two favourite social media platforms with short video features.
Recorded music was a key driver of short-form video engagement and a vital part of
enjoyment on these apps. Across all platforms, music was central to 63% of the
videos that were consumed on these platforms.
Short-from video apps enjoy a giant user base in India. Such apps often use a user-
generated content model and host copyrighted material on their platforms to
monetize the content. Monetization of content on these platforms also happens by
way of selling advertisements and harvesting user data. While doing so, such apps
often escape liability for any infringing material posted on their platforms due to the
user-generated nature of such material, claiming to be mere facilitators of user-
generated activities.
A value gap is therefore formed between the value that some of these apps earn
from music and the revenue that is returned to the music industry. For the music
sector to realize its fair value and to flourish sustainably, there is an urgent need to
closely monitor short-form video apps hosting unauthorised copyright protected
material, and to prevent the misuse of safe harbour provisions by some apps to
evade liability. If left unchecked, the said gap is liable to widen and hence impede
the growth of the music industry.

13
16
DIGITAL MUSIC STUDY 2022

Audio Streaming:
International Services Take Lead Over
Domestic Services

The use of licensed music streaming services was


strong across all age groups with 93% of the
respondents saying that they listen to music through
licensed audio streaming services (both paid and ad- The results on the method used by listeners to choose
supported). While 81.5% of the surveyed respondents their music suggest that most often, users like to
said they used ad-supported music streaming choose their own music from streaming services
services, only 44.5% said that they used the paid tier rather than being directed to music through platform
of music streaming services, down from 67% in 2021. curations. 65.2% of the respondents preferred to
search for specific songs on streaming services while
While the use of overall music streaming services was
58% listened to their own playlists. The methods to
the highest in the youngest age group surveyed (16-
choose music, therefore, seem to be driven mostly by
24) at 93.9%, the group showed the lowest rate in the
user choice rather than the recommendations created
use of paid tier of music streaming (36.8%). The top
by streaming platforms.
two reasons cited behind this group's aversion to
subscribing are the presence of YouTube and the cost The preferred way to stream music reveals the
of subscription services; that anything they want to prevalence of international services over domestic
listen to is available on YouTube and that the paid tier services. 46% of the respondents preferred YouTube
is too expensive. for streaming their music, a trend that has continued
since 2021, although this year recorded an 11% drop
The use of the paid tier of music streaming services is
from 2021. This trend is also indicative of the peculiar
the highest among the 25-34 age group (52.4%) who
preference of the Indian respondents to visually
are more likely to pay to listen to music without
engage with music. 20.1% preferred Spotify while
interruption and have access to millions of songs.
7.9% preferred YouTube music. Nearly three quarters
Listeners are willing to pay to enjoy listening to a rich
(77.4%) therefore said that YouTube or Spotify were
library of content without any interruptions. A rich
their favorite music streaming services. This was
library comprising millions of songs gives them a
followed by domestic services with Wynk and
wider range to choose their music from.
JioSaavn tied at 4.9% and Gaana at 3.8%.

17
DIGITAL MUSIC STUDY 2022

Why Do I Pay For Music Streaming?

35%

30%

LISTEN TO MUSIC WITHOUT INTERRUPTION


25%
ACCESS TO MILLIONS OF SONGS
20% IT’S GREAT VALUE

15% SAVE MUSIC TO DEVICE TO LISTEN OFFLINE


LISTEN TO WHAT I WANT, WHEN I WANT
10%
UNLIMITED STREAMS / SKIPS

5%

0%
16-19 20-24 25-34 35-44

Figure 5: Uninterrupted music and access to a wide range of songs are the top two reasons people are likely to pay for music streaming.

Why Do I NOT Pay for Music Streaming?

PERCENT CHOOSING
OPTIONS IN TOP THREE TOP SIX REASONS
REASONS TO SUBSCRIBE
60%
ANYTHING I WANT TO LISTEN TO IS ON YOUTUBE
IT’S TOO EXPENSIVE
50%
I PREFER THE FREE VERSION OF THE
STREAMING SERVICE WITH ADVERTISING
40%

I CAN DOWNLOAD ANY MUSIC I WANT FROM YOUTUBE


30%

I DON’T MIND BEING INTERRUPTED BY ADS


20%
I ALREADY HAVE/OWN ALL
THE MUSIC THAT I WANT
10%

0%
16-19 20-24 25-34 35-44

Figure 6: Listeners are likely to not pay for music streaming on account of the following reasons: presence of YouTube, cost of streaming
services, preference for the free tier, ability to download music from YouTube, tolerance for ads.

18
DIGITAL MUSIC STUDY 2022

The Steady Beat of the Radio


Keeping up with the trend from the past years, radio continues to go steady in
popularity among Indian listeners across all age groups, with music continuing to drive
engagement. 54.9% of the respondents listened to the radio. The highest engagement
with the radio was found among the 35-44 age group (68%) followed closely by the
25-34 age group (62%).
With 75% of the respondents mainly listening to the radio for music, it would be apt to
say that music remains the beating heart of all radio listenership. 66% of the listeners
stated that they tune into a particular radio station because of the music it plays and
62% accepted that they wouldn't listen to the radio if not for music. A striking 87% of
the radio listeners said that if the radio were to no longer play music, they would then
seek it elsewhere, most likely on YouTube (41%) or through a streaming service (39%).
This goes on to solidify the central role that music plays in boosting and maintaining the
popularity of radio.
Despite music playing a pivotal role in the popularity of the radio, statutory licensing of
sound recordings continues to be an impediment to the growth of the music industry.
Licensing fees should, therefore, be determined through free market practices so as to
realize the fair value that is due to rightsholders.

Engagement with Radio in India


Radio Listening Across Age Groups
80%

70%

60%

50%

40%

30%

20%

10%

0%
16-19 20-24 25-34 35-44

Figure 7: Radio listening was higher among the older age groups (25-44) as compared to the younger age groups (16-24)

19
DIGITAL MUSIC STUDY 2022

Livestreaming
Jury's Still Out
The live-streaming growth story started during the pandemic when restrictions were placed on live
performances and cinemas which prompted artists to connect with their fans via online platforms.
2022 recorded an increased engagement in music live streams in India, with live music concerts and
music festivals being the most popular live-streamed events. Overall, there was an increase of 12% in
livestream watching as compared to 2021, with 53.9% of all the respondents saying that they had
enjoyed a music live stream. The highest engagement was among 25-34-year-olds (59.4%), up by
15% as compared to 2021. 8 out of 10 respondents said that they enjoyed watching live streams with
62% agreeing that artists should stream at least one concert live while touring, suggesting a
considerable appetite for live streams to be a normal part of touring schedules. 61% agreed that live
streams were a great alternative when they found it difficult to attend live concerts. However, despite
the strengthened engagement with live streaming this year, half of the respondents said that
livestreams are no substitute for a real in-person concert, indicating a possible dwindle in the future.

Type of Livestream
An Awards Ceremony Streamed Live

An Online Live DJ Set or Club night

An Artist or Band performing Live from their homes or in an informal setting

An online version/Livestream of a Music Festival

A Music Concert Streamed Live

0% 5% 10% 15% 20% 25% 30%

Figure 8: The most popular types of livestreams watched by the respondents were live-streamed music concerts (watched by 26% of the
respondents) and music festivals (watched by 23% of the respondents).

20
GENERAL
TRENDS
DIGITAL MUSIC STUDY 2022

Music Listening in India:


Streaming Gets the Lion's Share
An average person in India aged 16-44 listened to an week, with its share pegged at 14.8% of the total
average of 25.7 hours of music each week, more than listening time.
3.5 hours each day. This is considerably higher than the While the use of streaming services such as Spotify,
global average of 20.1 hours a week. The hours of Wynk or YouTube for listening to music was similar
music listening in 2022 saw an increase of 3.8 hours, across all age groups, time spent on short-form video
an uptick of 17.2% compared to 2021. platforms was higher among the younger respondents
Out of the average hours spent listening to music, the (16-24). The older age group was more likely to also
biggest chunk of 25.8% (6.7 hours) can be attributed use the radio or listen to purchased music. All age
to audio streaming (subscription audio and ad- groups however spent an average of 4.8 hours on
supported), meaning that an average listener spent video streaming, indicating the inclination to consume
6.7 hours a week listening to music on audio music accompanied by videos, a trend that is common
streaming services. This trend was followed closely by for people of all ages. This hardly comes as a surprise
video streaming claiming a considerable 18.8% (4.8 in a country where 5 out of the Top Ten favourite
hours in a week). Short-form video platforms were genres are Bollywood-related and music engagement
used to listen to music for an average of 3.8 hours a remains heavily film-driven.

OTHER +0.7

PIRACY +0.3
1.4h SUBSCRIPTION AUDIO STREAMING +1.0
5.3%
2.0h
LIVE +0.8 7.7% 4.3h
16.6%
1.5h
5.9%
PURCHASED +0.3 HOURS OF 2.4h AD-SUPPORTED AUDIO STREAMING +0.4
1.9h 9.2%
7.3% WEEKLY MUSIC
LISTENING
RADIO +0.2 1.3h
4.9% 4.8h
18.8%

2.5h
9.6% VIDEO STREAMING -0.4
SOCIAL MEDIA +0.9
3.8h
14.8%

SHORT FORM VIDEO -0.4

Figure 9: Audio streaming accounted for the majority of listening hours (25.8%) while video streaming accounted for nearly 19% of the
listening time indicating the preference of Indian respondents to enjoy music accompanied by visuals.

19
22
DIGITAL MUSIC STUDY 2022

GENRES
A CLEAN SWEEP FOR BOLLYWOOD,
CLASSICS STILL A HOT GENRE
India demonstrated one of the highest levels of
domestic music listening, only third to the US and
China. In India, 69.8% of the time is spent listening to
artists of their own country. This number is the highest
among 35-44-year-olds (74.8%) meaning that the
older generation is more likely to prefer domestic
artists over international ones. Further, people in BOLLYWOOD (MODERN) 49%
India listen to over 8 different genres of music on
average. BOLLYWOOD (CLASSIC) 40%
Asked to rank their top three genres in order of how
often they were listened to, half of the top ten BOLLYWOOD NEW AGE (2000 - 2020) 33%
typically listened-to genres were from different
INDIAN HIP-HOP/RAP 30%
periods of Bollywood. Bollywood (Modern) was the
most listened-to genre preferred by 49% of the
BOLLYWOOD COMING OF AGE (80s, 90s) 28%
respondents, followed by Bollywood (Classic) (40%)
and Bollywood New Age (2000-2020) (33%). 2022
PUNJABI 27%
marked the rebound year of film releases after the
global pandemic which would explain the re-
INDIAN POP 25%
established position of Bollywood among the top
favourites. Punjabi (27%) maintained a spot in the top
HIP-HOP/RAP 25%
10, pointing at India's continued inclination toward
the genre which remains popular, despite being a
BOLLYWOOD RETRO (50s - 70s) 20%
regional language. Interestingly, the consumption of
the various forms of Bollywood music was the highest
DANCE/ELECTRONIC 17%
among 35-44-year-olds. With the mass of music in
India typically coming from films as has been
customary for ages, it may be the reason for the high
consumption of Bollywood-related genres among the Figure 10: 5 of the Top Ten Favourite Genres were
older age group. It is safe to conclude that domestic associated with Bollywood; Bollywood
music is the key to music listening in India. classics still remains a hot genre.

23
DIGITAL MUSIC STUDY 2022

Music Discovery Landscape


Given the wide variety of
formats available and the
massive range of new music
being released each week,
music discovery has listeners
constantly on the lookout for
new artists and songs. Rates of Music Discovery Landscape in India
music discovery were high
across all the respondents
with 71% discovering a new
50%
artist or music at least once a
week. The top three ways in
which listeners discover new 40%
music or artists were YouTube,
Social Media and Music 30%
Streaming Services. 53%
discovered most new music
20%
through YouTube, the most
popular source, once again
hinting at the Indian 10%
respondents' inclination
towards video streaming. 31% 0%
discovered new music through
16-19 20-24 25-34 35-44
social media platforms such as
Facebook and Instagram
making them key sources for YOUTUBE
discovery in India. While Short
SOCIAL MEDIA
Form Video platforms were
MUSIC STREAMING SERVICE
the most popular source of
music discovery for 16-24- SHORT FORM VIDEO
year-olds globally, in India TV OR FILM
their popularity remained
WORD OF MOUTH
much lower. Only 14% of the
respondents in India are more RADIO

likely to discover new music


through the radio, a rate that
Figure 11: YouTube is the most popular source of music discovery in India followed by social media
is far lower than the global and music streaming services. Radio as a source of music discovery was more common
average (37%). among the older age groups.

24
DIGITAL MUSIC STUDY 2022

Gaming, TV Shows and Films:


The Music Experience
Music also played an important role in boosting Over three-quarters of the respondents had engaged with
people's gaming experiences confirming the music through a music-focused television show or film
accelerated relationship of music with gaming in (76.6%). Engagement with music through TV or film was
recent years. Among the surveyed respondents, higher among the 25-44-year-olds. Overall, 38% of the
68% of gamers watched a virtual music concert on respondents had watched a TV Reality or Talent show focused
a gaming platform (such as Fortnite, Roblox, on music, 37.6% watched a music TV channel and 31.9%
Minecraft) in the last three months with Fortnite watched a film about a real music artist or event. Other types
and Roblox being the main venues for virtual of content included shows featuring music videos or live acts
concerts. 45% of people that attended a virtual (25.5%), musical films (24.1%), and documentaries about
concert on Roblox also listened more to the artist. music artists or events (23.6%). These trends indicate that
In-game merchandise related to the music event music plays a major role in driving engagement with films
was also popular with 27% buying it on Fortnite. and TV shows that people are watching.

PERCENTAGE OF RESPONDENTS WHO WATCHED A MUSIC-FOCUSED TV SHOW OR FILM

DOCUMENTARIES ABOUT ARTISTS OR EVENTS

A MUSICAL FILM FEATURING LOTS OF SONGS

A TV SHOW FEATURING MUSIC VIDEOS OR LIVE ACTS

A FILM ABOUT A REAL MUSIC ARTIST OR EVENT

A MUSIC TV CHANNEL

A TV REALITY OR TALENT SHOW FOCUSSED ON MUSIC

0% 5% 10% 15% 20% 25% 30% 35% 40%

Figure 12: Among the types of music-focused TV shows and films enjoyed by the respondents, the most popular were music-based TV
reality/talent shows, music TV channels, and films about real music artists/events.

22
25
DIGITAL
PIRACY
DIGITAL MUSIC STUDY 2022

The Endless Battle with Digital Piracy


Even with the advent of streaming, the threat of online piracy remains persistent; a looming, dark
cloud over the music industry, costing it billions in revenues and profits globally. Streaming
accounts for more than 80% of the recorded music revenues in the Indian market.¹⁰ However, as
internet and smartphone penetration increases in the country, so does the issue of digital piracy.
The rate of digital music piracy in India shot up to 73% in 2022 (up from 68% in 2021) which is
more than double the global average rate of piracy of 30%. The increase is indicative of the fact
that more internet users turned to copyright infringement this year as a way of listening to or
obtaining music. India ranks 4th on the list of countries having the highest rates of digital piracy.
The problem of digital piracy, therefore, appears to be compounding year after year.
Stream ripping remains the primary form of digital piracy. 70% of Indian listeners admitted to
using stream-ripping websites, with this percentage being slightly higher among the 16-34 age
group who preferred the simplicity and ease of use associated with stream ripping. Other
methods included lockers and peer to peer (P2P) services, the use of which was higher among the
25-44-year-olds, indicating that the population using these methods may be ageing. Mobile apps
were also a concern with the focus being on stream ripping from YouTube using apps such as
Vidmate and Snaptube which are easily available for android phones. The use of these apps was
the highest among 20-34-year-olds. Furthermore, 56% of the respondents said that they had used
an unlicensed mobile app to illegally download music, a percentage that is more than thrice the
corresponding global average (17.1%).

¹⁰ www.ifpi.org/wp-content/uploads/2022/04/IFPI_Global_Music_Report_2022-State_of_the_Industry.pdf

24
27
DIGITAL MUSIC STUDY 2022

OVERALL MUSIC PIRACY BY AGE


90%

80%

70%

60%

50%
2019
40%
2021
30%

20% 2022

10%

0%
16-24 25-34 35-44

Figure 13: The rate of music piracy in 2022 was relatively higher among the 25-34 age group.

MUSIC PIRACY BY METHOD


90%

80%

70%

60%

50%

40%

30%

20% STREAM RIPPING


P2P
10%
LOCKERS
0%
16-24 25-34 35-44

Figure 14: 70% of Indian listeners admitted to using stream-ripping websites making it the most common method of digital music piracy, with
this percentage being slightly higher among the 16-34 age group.

28
DIGITAL MUSIC STUDY 2022

USE OF UNLICENSED MOBILE APPS FOR MUSIC

70%

60%

50%

40%

30%

20%

10%

0%
16-19 20-24 25-34 35-44

Figure 15: Use of unlicensed apps for music was the highest among the 20-34 age group.

TOP 5 PIRACY RATES v GLOBAL AVERAGE


100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Nigeria Indonesia China India South Africa Global Average

TOP 5 PIRACY RATES v GLOBAL AVERAGE

Figure 16: The rate of digital piracy in India was 73% more than double the global average of 30%.

29
DIGITAL MUSIC STUDY 2022

INDIAN RATE OF MUSIC PIRACY v GLOBAL RATE


80%

70%

60%

50%

40%

30%

20%

10%

0%
2018 2019 2021 2022

INDIA GLOBAL

Figure 17: While the global average rate for digital music piracy has slightly plateaued, the same rate for India shows an upward trend.

30
DIGITAL MUSIC STUDY 2022

Interestingly, when asked what they would do The Role of Public-Private Partnerships:
if music piracy was no longer an option, the Operation 404 is a noteworthy example of not
majority of the respondents said that they just effective collaboration between the public
would turn to revenue-generating licensed and the private sector yielding results, but also of
methods with 41% choosing YouTube, 24% in international cooperation in addressing digital
favour of paid streaming and 9% in favour of piracy. The collaboration of Brazilian authorities
free tier streaming. It, therefore, becomes with the UK IPO, PIPCU and United States
imperative to find effective ways to address Homeland Security for Operation 404 is
the problem of digital piracy and ensure that illustrative of how administrative cooperation
the growth of the recorded music industry is amongst countries at the global level can enable
not impeded due to revenue leakages caused. the shutting down of pirate operations and
Brazil's Operation 404 is an important example facilitate action against various forms of digital
in highlighting the significance of piracy originating in other countries. The
international public-private partnerships as an collaborative response also resulted in
effective method of strengthening IP knowledge sharing, increased operational
protection. In 2019, Brazil's Ministry of Justice effectiveness and the development of more
and Public Security initiated a campaign called effective strategies to fight digital piracy.¹²
“Operation 404” (codenamed after the famous Unified Response a Deterrent to Pirates: As
HTTP error titled “Error 404”). The campaign is demonstrated in the example of Operation 404,
coordinated by the Secretariat of Integrated public-private partnerships allow for a more
Operations (SEOPI) from the Ministry of Justice unified response to enforcing copyright by
in Brazil, in collaboration with the UK IPO, the pooling resources and expertise and streamlining
Police Intellectual Property Crime Unit (PIPCU), efforts against pirated apps and websites.
Brazilian Civil Police, and United States
Reduced Burden on the Judiciary: Time is of the
Department of Homeland Security and aims at
essence in addressing the rapidly evolving forms
combating IP crimes across the country. Spread
of digital piracy. In such situations, taking the
over four phases, with the most recent one
judicial route to copyright enforcement would
announced in June of 2022, the campaign has
mean adding to the financial and time costs, thus
so far prompted around 100 search and
compounding the burden on the judiciary as well
apprehension orders and resulted in the
as the rightsholders. The collaboration of the
blocking of over 1000 pirate sites and 700
private sector with government agencies,
pirate apps streaming illegal content.¹¹
therefore, makes for a swift response; attacking
The example of Brazil's Operation 404 carries the very root of digital piracy, saving both time
some important lessons which may be and cost and lessening the burden on the
effective in India's own battle against digital judiciary.
piracy.

¹¹ https://indianmi.org/wp-content/uploads/2022/11/Brazil-Operation-404-Trilateral-Lessons-for-India-1.pdf
¹² Id.

31
DIGITAL MUSIC STUDY 2022

OTHER IMPORTANT MEASURES TO TACKLE DIGITAL PIRACY


The following measures should be taken to tackle the ever-growing concern of
digital piracy.
Administrative enforcement: This method has proven to be effective in fighting digital
piracy in countries such as Greece, Italy, Lithuania, and Spain. Administrative
enforcement is the need of the hour in expeditiously addressing the cases of digital
piracy in addition to the judicial route for blocking websites which in the digital era is
time-consuming and might not result in swift action in cases where speedy remedies
are required. It is therefore recommended that the government provide a robust
administrative enforcement system to target websites and platforms involved in
copyright infringement.
Addressing Misuse of the Safe Harbour Provisions under Section 79 of the
Information Technology Act: The Music industry continues to suffer revenue losses as
certain interactive UGC platforms and rogue websites that thrive on unlicensed music
use safe harbours as a weapon to escape liability for copyright infringement. The
intermediary liability framework for websites and platforms, therefore, needs
tightening to ensure they do not escape scot-free for hosting unauthorized content
which ultimately has a negative economic impact on the music industry. The safe
harbour regime in India must provide for not only a time-efficient notice-and-action
mechanism mandating digital platforms to take down infringing content on receiving
notice from rights-holders/ authorized representatives but also a provision to ensure
that such infringing content doesn't reappear on the same platforms again. For all
intents and purposes, take down must also mean stay down.
Public-private partnerships: As demonstrated by the example of Brazil's Operation
404, public-private partnerships are a unified response to copyright infringement and
make for a solidified response against digital piracy. India has a good example of this in
the Maharashtra Intellectual Property Crime Unit (MIPCU), a public-private initiative,
attached to the Maharashtra Cyber cell and mandated to act against IP-related crimes
including digital piracy. Efforts should be made to have similar establishments in all
states and union territories to create a fortified network against digital piracy.

32
CONCLUSION

26
DIGITAL MUSIC STUDY 2022

The Indian recorded music industry has progressed at an average growth rate of 17% over the
last three years. After a period of slowed growth due to the pandemic, the sector has bounced
back with increased consumption and engagement. Music continues to enrich wellness, shape
engagement, and define experiences across a variety of platforms. It has proven its resilience
and driven by technological tailwinds, the sector is only set to expand in the future.
The outlook of the industry remains strong in the post-pandemic future. Growth of streaming,
new licensing formats, and a changing consumer demographic driven by the millennials and
Gen Zs are just some of the opportunities that hold immense potential for the industry. These
combined with the tailwinds of technological innovation, an expanding internet and
smartphone user base, and some of the lowest data prices in the world are sure to propel the
industry forward.
Record labels through increased investment, artist development, content creation and
marketing, have always played an instrumental role in the music ecosystem, ensuring that the
demand for music is met and that both the listeners and artists are satisfied. Certain
bottlenecks however remain to be addressed. The growing levels of digital music piracy that
continue to be far above the global average are concerning and result in revenue leakages
that obstruct the growth of the music industry. While the use of licensed music streaming
services was strong across all age groups with 93% of the respondents saying that they listen
to music through licensed audio streaming services (both paid and ad-supported), the rate of
piracy still increased from 68% in 2021 to 73% in 2022, indicating that despite using legal
means, it is likely that the listeners also use unlicensed means to obtain or listen to music.
Several policy initiatives such as administrative enforcement, and public-private partnerships
need to be implemented to create a strong framework against digital piracy. In addition to
this, the misuse of safe harbour provisions must also be addressed so as to ensure that
increased engagement across short-form video apps also translates to greater value for the
rightsholders. Such measures are key to promoting the sustainable growth of the music sector
driven by greater investment, innovation, and consumption.

34
About IMI About IFPI About AudienceNet
The Indian Music Industry (IMI) is the The International Federation of the AudienceNet is a social service and
apex body that represents the interest Phonographic Industry (IFPI) is the consumer research agency, which
of the music companies a.k.a. record organization that represents the employs statistical analysis and data
labels on a pan-India basis. IMI is an interests of the recording industry visualization to profile and engage
IFPI affiliate which is the global body worldwide. It is a non-profit with audiences across the globe. It
that represents the recorded music members' organization registered in was founded in the UK in 2011 and
industry worldwide. All major music Switzerland and founded in Italy in has offices in London, Washington DC
labels in India are part of this 1933. It operates a Secretariat based and Melbourne.
association. IMI is the leading force in in London, with regional offices in
India's fight against music piracy and Brussels, Hong Kong and Miami.
establishing IP rights.
For Queries: [email protected]
Editor: Arasha Khan, Associate: Eco-legal, Indian Music Industry
Design by: Designism Corporate Communications & Graphics

Twitter: @IndianMusicorg
Instagram: official_indianmusicindustry
Facebook: The Indian Music Industry
LinkedIn: The Indian Music Industry
Website: www.indianmi.org

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