EY-IMI Survey Reveals What It Will Take for Indians to Pay for Music (and Why some Won’t)

Why It Matters

The data signals a sizable conversion opportunity for streaming services if they can balance affordable pricing with ad‑free or premium features, reshaping revenue models in a market where piracy and free platforms currently thrive.

Key Takeaways

• 96% of Indian smartphone users listen to music daily
• 77% use legal streaming services, but only 58% pay
• 42% of free listeners would subscribe if price low or ads removed
• 40% would pay for an ad‑free experience
• 66% of non‑paying users would switch to YouTube

Pulse Analysis

India’s music streaming landscape is undergoing a pivotal shift, driven by unprecedented smartphone penetration and a youthful, digitally native audience. While 96% of users now stream music on mobile devices, the legal ecosystem captures only a fraction of that activity. YouTube’s audio‑streaming dominance—estimated at more than twice the user base of dedicated music apps—underscores how entrenched free, ad‑supported consumption has become. Rights‑holders and platform operators must therefore navigate a market where the line between legal and illicit listening is blurred by price sensitivity and cultural habits.

The EY‑IMI survey reveals a nuanced willingness to pay among Indian listeners. Although 77% of respondents use licensed services, just 58% have ever subscribed, indicating that access alone does not guarantee revenue. However, 64% of the free‑streaming cohort would consider a paid tier if pricing were modest or ads were eliminated, with 40% explicitly valuing an ad‑free experience, 33% seeking full playback control, and 31% desiring lossless audio. These preferences mirror global premium‑feature trends but must be calibrated to India’s cost‑conscious consumers, suggesting that tiered, feature‑rich plans could unlock latent demand.

For industry stakeholders, the path forward lies in hybrid monetization models that blend low‑cost subscriptions with ad‑supported tiers, leveraging data‑driven personalization to justify price points. Partnerships with telecom operators, bundled offerings with video or broadband services, and localized content curation can further reduce friction. Moreover, educating users about the value of royalty‑based compensation may shift attitudes toward paying for music. As the market evolves, platforms that adeptly balance affordability, feature differentiation, and a seamless user experience stand to capture a larger share of India’s burgeoning music economy.