Daily streams on audio streaming platforms reached 460 million in FY23: RedSeer

It further stated that the consumption growth on audio streaming apps has accelerated due to wider internet penetration, affordable mobile data, and the growing popularity of music as an on-demand entertainment option for consumers. The firm stated that growth in audio streaming apps is led by both users and engagement.

“The COVID pandemic witnessed during FY21 and FY22, accelerated the growth of OTTA (OTT Audio), adding more than 50 million music listeners, not only from the young age group but also among people with more than 40 years of age,” said Ujjwal Chaudhry, Partner, RedSeer Strategy Consultants.

The study further states that vernacular streams have grown the fastest in three years with digital maturity growth in smaller cities and more regional label partnerships.

Vernacular music, the study noted, has experienced rapid growth in the last four years, accounting for 34% of music streams in FY23. Within vernacular, the South Indian market has witnessed a surge in both user base and engagement in the last two years due to a higher number of blockbuster movie releases.

With a 39% share, Punjabi is the highest contributor in audio streaming industry in the non-film genre music. In the last four years, songs of artists like AP Dhillon, and Diljit Dosanjh, have been played not just in the north, but across all states.

RedSeer stated that subscription revenue has witnessed significant growth compared to ad revenue. In FY23, about 5% of monthly active users were paid subscribers with average revenue per user (ARPU) of INR 60 to INR 70 per month.In the last 2-3 years, diversity in the subscription packs has increased (student plans, one-day and one-week packs, etc) which has led to more subscriptions, mostly coming from the top 10 – 12 cities of India.

As per the study, Swedish music streaming platform Spotify has established itself as the market leader, capturing 26% of streams in FY23 due to its focus on Hindi and vernacular languages.

It is further noted that the platform has played a crucial role in bringing first-time users between the ages of 15 to 30 years to audio streaming.

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