Streaming now brings in 70 per cent of the Rs 1,068 crore the industry made in early 2019.
The
Indian
music industry is growing, but in bits and bytes. Both audio and
video streaming grew 30 per cent during the earlier part of the year.
Streaming now brings in 70 per cent of the Rs 1,068 crore the
industry made in early 2019.
The
remainder came from physical sales, performance rights, and other
revenues, according to the latest Digital Music Study 2019 from the
Indian Music Industry (IMI), which represents the Indian recorded
music industry and is affiliated to the International Federation of
Phonographic Industry (IFPI).
The
study is based on a sample of 3,000 Indians aged 16-64, who were
interviewed earlier this year.
The
feel good numbers suggest that Indians spent more than 19 hours a
week listening to music, and 97 per cent of them did so on a
smartphone device.
However,
the numbers get pretty sad after that. The biggest issue is the
disparity between the amount of time people spent on a medium or
method, and the revenues it brought. For instance, video streaming as
a share of total listenership grew from 45 per cent in 2018, to 55
per cent in 2019. However, its contribution to revenues fell from 20
per cent to 18 per cent.
The
radio industry, which accounted for close to 22 per cent of
listening, brought in just under 3 per cent of revenues. It should be
noted that the video
streaming industry is about five times and radio over three times
the size of the music industry.
“Such
discrepancies in revenue contribution may be attributed to
legislative and regulatory impediments that inhibit the return of
fair value to rights holders,” says the study. In radio, for
instance, royalty is mandated at 2 per cent of advertising revenues
by the Copyright Board.
This
is an anomaly by any standards. In most industries, revenues are
usually indexed to the audience share. For instance, given that just
over half the TV industry’s viewership comes from general
entertainment channels, a similar proportion of its ad revenues come
from the same medium.
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