India’s Paid Music Subscribers Could Hit 30 Million by 2028, EY-IMI Report Finds

India's paid music streaming subscriber base is on track for explosive growth, projected to nearly double from an estimated 14 million in December 2025 to between 28 million and 30 million by 2028. This forecast comes from the "How India Listens, Streams and Pays for Music" report, a collaborative effort between EY and the Indian Music Industry (IMI), unveiled Friday in Mumbai. The study is based on a survey of over 15,000 smartphone users conducted in March and April, supplemented by psychometric research involving more than 2,200 consumers and interviews with industry executives. Given that IMI represents more than 75% of India's recorded music market, its insights carry significant weight in shaping sector strategies. "This report underscores the immense potential waiting to be unlocked," remarked a senior analyst familiar with the findings, emphasizing the gap between consumption habits and monetization.

A striking paradox lies at the heart of India's music landscape. While 96% of smartphone owners consume music and 80% listen for over an hour daily, only 38% have ever paid for music streaming—including bundled subscriptions. In stark contrast, 86% have paid for video streaming services. Dedicated digital service providers (DSPs) remain the go-to platform for structured listening, used by 60% of respondents, while 32% rely on YouTube. However, YouTube, fueled by short-form video, dominates as the primary tool for music discovery. The report attributes this disconnect to India's leapfrog from physical formats directly to free, ad-supported streaming, bypassing the paid subscription culture seen in mature markets. "India's music market is like a teenager who skipped the CD-buying phase entirely and went straight to free mixtapes online," noted one industry analyst, highlighting the unique challenge of building a payment habit from scratch. For context, in countries like Sweden or the U.S., the transition from physical sales to paid streaming was more gradual, providing a historical precedent that India lacks.

Industry leaders have weighed in on both the hurdles and the path forward. Blaise Fernandes, CEO of IMI, argued in his foreword that a "non-paid for music ecosystem eventually negatively impacts the creators and copyright owners," advocating for a tiered paid model developed through collaboration among record labels, DSPs, and creators. He added, "Art requires more than just inspiration; it requires economic oxygen. To take Indian music global and discover our next generation of talent, we must transition from being a passive consumer market into an active patron’s market." Vikram Mehra, chair of IMI, noted the survey validates the belief that Indian consumers are ready to pay for quality, with a goal of elevating India into the top five music markets globally. Currently, India ranks around 15th in recorded music revenue, according to the IFPI, meaning top-five status would require sustained, aggressive growth. Ashish Pherwani, partner at EY India, framed the findings as a call to enhance subscription adoption through better consumer awareness and innovation, pointing to opportunities in personalized offerings and targeted marketing.

The psychometric research, conducted by MindLink, segments smartphone owners into three distinct groups: Payers with active subscriptions, Fence-sitters who use free versions but might convert, and Never-payers who rely solely on YouTube. Among Never-payers, 49% feel music streaming isn't worth paying for, while 36% believe it's wrong to pay for digital products when free alternatives exist—a sentiment shared by 29% of Fence-sitters and 9% of Payers. Fence-sitters represent a more viable conversion target, with 27% stating that paying becomes worthwhile with regular use and 34% citing reliability as a key motivator. Interestingly, only 7% across all groups said bundling alone would drive them to adopt a paid product, and 38% of Fence-sitters and 33% of Never-payers expressed a preference for owning songs outright over subscribing. This preference for ownership echoes the vinyl and CD revivals seen in Western markets, suggesting that hybrid models—offering both streaming access and digital download options—could resonate with Indian consumers. "The desire for ownership is a cultural trait that streaming services often overlook," said a Mumbai-based music industry consultant.

Several structural factors underpin optimism for future growth. India's smartphone base is expected to expand from 584 million in 2025 to 735 million by 2030, while real GDP grew 6.5% in 2025, positioning the country to become the world's third-largest economy by 2030. The report also highlights the expanding vehicle fleet—over 400 million registered vehicles in 2025, up from 326 million in 2020—and a young population, with 65% of Indians under 35, as durable drivers of music consumption. Paid subscriptions grew 37% in 2025 alone, with subscription revenues projected to rise from approximately INR10 billion ($111 million) to INR22 billion ($244 million) by 2028. Industry CEOs interviewed for the report estimate the long-term ceiling at 50 million to 75 million paid subscriptions. Among current payers, ad avoidance (44%), the ability to play songs in any order (38%), and higher audio quality (36%) are the top motivators. Conversely, 42% of non-payers cite YouTube as providing all the music they need for free, while 33% mention price and 30% see no need for premium features. The report recommends closing the gap through context-aware listening features tied to activity or mood, deeper bundling with telecom and e-commerce platforms, and multi-purpose apps integrating music with live events, karaoke, and creator content, alongside continued anti-piracy enforcement. Given that telecom giants like Reliance Jio already bundle streaming services with data plans, such integrations could prove particularly effective in converting fence-sitters, especially as 5G penetration deepens across rural and semi-urban areas.