50% music streaming users face subscription traps, hidden charges: Survey

Nearly two-thirds of Indian users of music streaming platforms have frequently faced manipulative subscription practices designed to discourage cancellations, a survey by LocalCircles found

Nearly two-thirds of Indian users of music streaming platforms have frequently faced manipulative subscription practices designed to discourage cancellations, a survey by LocalCircles released on Tuesday showed, highlighting growing concerns over the use of “dark patterns” in the country’s rapidly expanding digital streaming market.

 

The survey, conducted among over 93,000 users across 323 districts, found that 62 per cent of respondents had “very frequently” experienced “interface interference,” where cancellation options are designed to nudge users into continuing subscriptions. Moreover, 49 per cent of users reported facing “subscription traps”, while 44 per cent said they were subjected to “bait and switch” pricing practices involving higher charges after an initial offer period.

 

 

The findings come amid heightened regulatory scrutiny of dark patterns in the country. India has formally classified such practices as unfair trade practices under its consumer protection framework. At the same time, the Central Consumer Protection Authority (CCPA) has issued guidelines that identify and prohibit 13 specific dark patterns used across digital platforms.

 

Weak compliance

 

The audit conducted by LocalCircles found that of 26 platforms that self-declared as ‘dark pattern free’ to the CCPA, 21 were found still deploying dark patterns, with drip pricing detected on 11, highlighting that voluntary compliance remains weak and that subscription-stage manipulation persists across the digital economy, the report stated.

 

It stated that platforms including Spotify, Amazon Music, YouTube Music, Apple Music, Gaana and JioSaavn displayed varying forms of dark patterns such as interface interference, subscription traps, forced action and drip pricing.

 

The survey further stated that 19 per cent of users said they were “very frequently” charged periodically even after discontinuing a subscription, a practice categorised as a SaaS billing dark pattern.

 

The report also linked the concerns to recent changes in subscription models across the industry. Amazon Music’s recent decision to introduce advertisements for Prime users unless they upgrade to a higher-paid tier reflects a “bait and switch” dynamic where terms change after users are already committed to a service, it said.

 

It also cited similar practices globally, stating that Spotify implemented its third price increase in four years in early 2026 and continues to obscure its cheaper music-only ‘Basic’ plan through comparison prevention and obstruction, to the extent that an estimated 99 per cent of subscribers never encounter it.

 

India’s streaming market expands

 

The findings come at a time when India’s streaming market is evolving rapidly, driven by cheap mobile data, affordable smartphones and increasing adoption of paid subscriptions. India now ranks second globally, after the US, in terms of on-demand music streaming volume.

 

According to the report, paid subscriptions in India’s on-demand music streaming market are projected to cross 20 million by 2027.

 

Digital revenues now constitute the majority of the music industry’s income, with streaming revenues increasing to $541 million in 2024 from approximately $201 million in 2020. Streaming has also enhanced royalty collections and artist earnings, reflecting the broader monetisation of digital music consumption in India.