The total music industry revenues in India grew from Rs 570.7 crore in 2016 to Rs 725.6 crore in 2017. This increase in revenue by Rs 154.9 crore is the largest since 2011, according to data from IFPI, a not-for-profit international organisation which represents the interests of 1,300 record companies from across the globe.
The revenues from music streaming grew at a rate of 37.26 per cent and revenues from digital music now amount to over 91 per cent of the Indian recorded music industry revenue.
There were two primary factors driving this positive growth in digital music consumption, i.e. increased data consumption in the advent of cheaper data rates and greater smartphone penetration.
The digital revenue alone in 2017 was Rs 665.6 crore which is greater than the combined industry revenue of Rs 570.7 crore in 2016 by almost Rs 95 crore.
"Last year's figures were phenomenal and we were expecting the market to do well this year as well, but a 27 per cent growth in 2017 has exceeded our forecasts. Going into 2018, our aim is to make music even more accessible, affordable and unlimited."
"To sustain this growth, the industry will start laying the groundwork for a subscription eco-system," Shridhar Subramaniam, President India and Middle East - Sony Music, said in a statement to IANS.
Blaise Fernandes, President and CEO, IMI, feels glad that digital music is claiming a larger part of the pie in line with the global trends.
"Various initiatives undertaken by the government like Digital India and Bharat Net programmes will enable the Indian music industry to out-perform most evolved recorded music industries in the digital domain and climb up in rankings in the coming years."
But music listeners are still consuming music from pirated websites. Stream-ripping remains a major threat to the music industry in India.
According to a 2017 study by IPSOS for Indian Music Industry (IMI), an IFPI affiliate, the apex body that represents music companies operating in India both internationally and domestically, 94 per cent of the 900 surveyed music consumers in India admitted to using some form of piracy to access music.
"While the 2017 figures may paint a pretty picture, Indian Music Industry is still greatly impacted by digital piracy and value gap," said Vikram Mehra, Managing Director of Saregama India Limited.
"We must work together in curbing piracy through a multi-pronged approach involving various stakeholders at the state and central levels."
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)