Indias Paid Music Streaming Subscribers Could Reach 30 Million by 2028, EY-IMI Report Shows

A joint study by Ernst & Young (EY) and the Indian Music Industry (IMI) released in Mumbai on 24 July 2026 projects that India’s paid music‑streaming subscriber base will grow to between 28 million and 30 million by 2028, up from an estimated 14 million in December 2025.

The report, titled How India Listens, Streams and Pays for Music, draws on a March‑April 2026 survey of more than 15,000 smartphone owners and psychometric research covering 2,200 consumers. It also incorporates interviews with industry executives.

Music consumption is widespread, but paid adoption lags

The study finds that 96 % of smartphone owners in India listen to music and 80 % spend more than an hour a day on music. Despite this high engagement, only 38 % have ever paid for a streaming subscription, including bundled plans. In contrast, 86 % of respondents have paid for a video‑streaming service at some point. Digital service providers (DSPs) are the preferred destination for structured listening, used by 60 % of respondents, while 32 % rely on YouTube for music, which remains the largest platform for discovery.

Paradox of a free‑first market

Blaise Fernandes, CEO of IMI, wrote in the report’s foreword that a “non‑paid for music ecosystem eventually negatively impacts the creators and copyright owners.” He urged record labels, DSPs and creators to collaborate on a tiered paid model. Fernandes added that “paying for an audio digital subscription is a direct investment by the fan to show support to their favorite performers and also helps in preserving and exporting our rich cultural heritage.”

Vikram Mehra, chair of IMI, said the survey confirms that “Indian consumer is ready to pay for quality.” He added that the goal is to move India into the top‑five music markets worldwide.

Industry context

India’s 14 million paid subscribers are far below Brazil’s 30 million and the United States’ 106 million. China, which had a smaller market in 2015, now has more than 171 million paid subscribers and ranks second globally in streaming revenue.

EY partner Ashish Pherwani described the findings as an “opportunity for the industry to further strengthen subscription adoption through improved consumer awareness, differentiated offerings and innovation that responds to evolving listener preferences.”

Consumer attitudes by cohort

The psychometric research, conducted by MindLink, categorises users into three groups:

Payers – active paid subscribers. Fence‑sitters – free‑users who would pay if no other choice existed. * Never‑payers – users who rely on YouTube and do not use paid music apps.

Among Never‑payers, 49 % said music streaming isn’t worth paying for and 36 % felt it was wrong to pay for digital products when free options exist. The same sentiment was shared by 29 % of Fence‑sitters and 9 % of Payers.

Fence‑sitters were more likely to convert: 27 % said paying is worthwhile once they use a service regularly, and 34 % cited reliability as a reason to pay. Across all cohorts, only 7 % said bundling alone would be enough to get them to value and adopt a new paid product, while 38 % of Fence‑sitters and 33 % of Never‑payers preferred owning a collection of songs outright.

Structural drivers and revenue outlook

India’s smartphone base is projected to rise from 584 million in 2025 to 735 million by 2030. The country’s real GDP grew 6.5 % in 2025 and is expected to become the world’s third‑largest economy by 2030. The vehicle base grew from 326 million in 2020 to 400 million in 2025, and 65 % of Indians are under 35, a demographic that drives music consumption.

Paid subscriptions grew 37 % in 2025 alone. Subscription revenues are projected to rise from roughly INR 10 billion (about US $111 million) in 2025 to INR 22 billion (about US $244 million) by 2028. CEOs interviewed in the report estimate the long‑term ceiling for paid subscribers at 50 million to 75 million.

Reasons for paying and not paying

Among those who pay, the top reasons were avoiding ads (44 %), the ability to play songs in any order (38 %), and higher audio quality (36 %). For non‑paying users, 42 % cited that YouTube already provides all the music they need for free, 33 % mentioned price, and 30 % said they simply do not need premium features.

Recommendations for closing the gap

The report suggests several strategies: building context‑aware listening features tied to activity or mood; deepening bundling with telecom, banking and e‑commerce platforms; developing multi‑purpose apps that connect music with live events, karaoke and creator content; and continuing enforcement action against piracy.

Current situation

The EY‑IMI study indicates that while India’s music streaming market is highly engaged, paid adoption remains low compared to global peers. With projected growth to 28–30 million paid subscribers by 2028, the industry faces a clear opportunity to convert free listeners into paying customers through targeted product innovation, strategic partnerships and consumer education.