Affordable subscriptions, AI-led personalisation and growing investments in regional and independent artists are helping music streaming platforms deepen paid adoption in India, even as monetisation remains far below global markets.
Players such as Spotify and JioSaavn are increasingly moving beyond a one-size-fits-all model, experimenting with tiered pricing, sachet subscriptions and creator-focused ecosystems to attract users in one of the world’s most price-sensitive digital markets.
End of One-Size-Fits-All
Spotify India rolled out tiered premium subscriptions in November 2025, introducing Premium Lite at Rs 139 per month, Premium Standard at Rs 199 and Premium Platinum at Rs 299. While all these plans offer ad-free listening, Lite is the entry point, Standard is the everyday plan that offers offline downloads, on-demand listening, and uninterrupted music and Platinum offers features like lossless audio for high-fidelity streaming, AI-powered experiences like AI DJ and AI Playlist, among others.
“The shift from a one-size-fits-all model to a tiered offering is a deliberate choice to give Indian listeners more control over how they engage with Spotify,” Amarjit Singh Batra, GM–SAMEA and MD–India, Spotify, told FE. “Affordability is part of the picture, but it isn’t the whole story. The bigger idea is meaningful choice,” he added.
The strategy appears to be yielding results. Spotify India reported a net profit of Rs 74.6 crore on revenue of Rs 527 crore in FY25, marking a significant turnaround.
JioSaavn, meanwhile, has focused on low-cost starter packs, including Rs 9 for two months, a one-month free trial and annual plans priced at Rs 399. The company said adoption of such plans is helping premium subscribers grow faster than free users. “We constantly aim to adopt a market-sensitive pricing strategy that aligns with consumer behaviour while remaining competitive,” a company spokesperson said.
Industry executives say streaming firms have steadily refined pricing and bundling strategies to suit Indian consumption patterns. “This calibrated approach has not only broadened access but also encouraged a growing segment of listeners to upgrade to ad-free experiences, attracted by the compelling value proposition,” Chandrashekhar Mantha, partner, media and entertainment sector leader, Deloitte India, said.
The platforms are targeting millions of users shifting from free video consumption on YouTube to dedicated audio services. “The subscription costs are less than the price of a cup of coffee per month. Low prices like Rs 59/month or student plans at Rs 49 aim to convert users who previously relied on piracy or ad-supported tiers,” Brijesh Damodaran Nair, managing partner, Auxano Capital, said. “In India, ‘cheap and best’ isn’t just a slogan; it’s the entry ticket,” he added.
According to the latest Ficci-EY media and entertainment report, paid subscribers in India’s audio streaming market rose 37% to 14 million in 2025 from 10.5 million in 2024. However, 92% of users continue to consume free content, highlighting the sector’s monetisation challenge.
Beyond Bollywood
Streaming firms are also betting on creators and regional music to drive engagement. Spotify said more than 28,000 Indian artists are actively using Spotify for Artists, while over 9,000 artists were supported through editorial playlists last year. Independent and non-film artists, historically overshadowed by Bollywood music, are projected to account for 30-40% of streaming consumption in the coming years.
“These platforms have not only democratized access to music but also enabled the discovery of emerging talent,” Mantha said.
Even so, monetisation remains weak compared to mature markets. Annual Arpu in India remains between $4 and $10, against $100-140 in the US and $16-18 in China. The bet for streaming companies is that India’s base of more than 700 million internet users will eventually offset lower per-user revenues.