Professional services firm EY has released what it calls the “first comprehensive report on the music publishing industry in India”.
Like the annual media and entertainment report for the Federation of Indian Chambers of Commerce & Industry (FICCI), the latest edition of which was released in April, The Music Creator Economy: The Rise of Music Publishing in India is packed with statistics.
According to EY estimates, music revenue in India, from both direct and indirect sources, stands at ₹12,047 crore (approximately $1.45 billion), accounting for 6% of the country's media and entertainment sector.
These consist of income from:
- Digital Platforms (5,692 Crore / USD 683 Mn or 47% of the total)
- Broadcast (Rs 4,350 Crore / US$ 522 Million or 36%)
- Filmed Entertainment (Rs 1,200 Crore / US$ 144 Million or 10%)
- Concerts and Events (Rs 805 Crore / US$ 96 Million or 7%)
(The methodology here is that EY considered 100% of music streaming and music concert revenues to be music-related; 75% of radio broadcast revenues; 30% of YouTube and short-form video revenues; 10% of film entertainment revenues; 5% of…other Event revenue and 4% of television revenue.)
Breakdown of India's Music Revenue
These figures are significantly higher than those reported for India's recorded music industry. According to IFPI's Global Music Report, India ranks 14th in the world with sales of $318.6 million in 2022.
According to Cisac's Global Collections Report, the Indian Performing Right Society (IPRS) was ranked 23rd in terms of publishing revenues in the same period with revenues of 68 million euros.
According to the EY report, publishing revenue in India actually stood at Rs 884 crore ($106 million) in the 2022-23 financial year – split into Rs 564 crore ($68 million) from IPRS and Rs 320 crore ($38 million). US dollars) directly from the publishers.
This represents a growth of 2.5x over Rs 340 billion in fiscal 2019-2020, the report said. It adds that with “better legal clarity, awareness and compliance,” the value of the music publishing industry can reach Rs 1,700 crore ($204 million) by 2027.
The report includes a table comparing the differences in sources of publishing revenue in India and globally.
The most notable differences are that in India, online sources account for the majority of revenue at 66%, as opposed to 37.7% globally, while broadcast (TV and radio) and public appearances (events, retail, hotels, etc.) account for only 17% (compared to 32.8%) and 12% (compared to 23.2%), respectively.
As the report shows, while 71% of audio streaming platforms and 56% of short-format video platforms operating in India are licensed by IPRS, the corresponding share is only 13% for concerts, 12% for television channels and more less than 1 % for retail establishments, hotels, restaurants and radio stations.
Another key reason for the differences, as the EY report states, is that the payment of royalties from publishing rights is “currently controversial in India in the context of radio and its values are controversial in relation to other media.” refers to long-running legal disputes between IPRS and radio stations.
75% of composers have yet to register
Added to this is the fact that out of a “potential base” of 60,000, only 13,500 authors and composers have registered their works with the IPRS, meaning that over 75% have not joined the collecting society.
A panel at the recent All About Music conference in Mumbai revealed that one of the reasons for their reluctance to sign up was related to the controversial “No Objection Certificates” that some artists are getting signed by some Indian radio stations.
For the report, EY interviewed some of these YouTubers to “better understand the connection between popularity, monetization and career span.” Of the 500 people surveyed, more than 83% have been working as musicians for more than five years.
The survey's findings included that only 60% of respondents make their living from music alone; 12% said music was never their full-time career. Only 56% reported having access to music production equipment and software, while 35% spent more than half of their income purchasing this equipment.
A section on their sources of income shows that live performances and one-off payments for creating content for music labels and film producers were their main earners, followed by composing or playing background music and working on sessions for films, TV and web series and advertisements; royalties from self-published music; publication fees; and brand sponsorship.
A note on exchange rates: For consistency, current exchange rates are used in this article and not those mentioned in the report.
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