Luis Fonsi and Daddy Yankee’s Spanglish summer single Despacito featuring Justin Bieber has broken all streaming records on Wynk Music. We all know that international music is growing in India, and this indicates how it is being consumed on music streaming apps as well.
The music industry is expected to grow to Rs 2,540 crore by 2021 from an estimated Rs 1,220 crore in 2016 at a CAGR of 15.8%, as per the FICCI-KPMG Media and Entertainment Industry Report 2017. The report goes on to highlight that digital music now generates an estimated revenue of 70% of the overall size of the music industry, while synchronisation, performance rights and physical channels contribute the remaining share.
As per a 2014 report by Nielsen, 27% of the population around the globe discovers new music from music streaming apps, a trend that is growing by 7% annually, thanks to the ease of tuning into the music from around the world on the go.
“Wider smartphone coverage, cheap data plans and proliferation of streaming service providers such as Gaana and Saavn have driven growth. The reach of the digital medium has also prompted large music labels such as Saregama to move into this segment,” points out Swarnava Adikhary, senior economies and consumer analyst, Euromonitor International.
As consumers adopt digital streaming as a medium for music consumption, the market is seeing the entry of newer contenders, in addition to established players like Saregama, Gaana, Hungama, Saavn, etc.
Recently, ticketing company BookMyShow launched its music service — Jukebox. “During our research and consumer studies, we realised that we can play a significant role in this (audio entertainment) space,” says Aditya Kuber, associate VP—audio entertainment, BookMyShow, adding, “With Jukebox, we aim to ease the consumption of audio entertainment by creating a destination that is different, fresh and highly engaging.”