Mumbai: The Indian music industry generated Rs. 12,000 crore in revenue last year involving more than 40,000 music creators, says an EY report titled ‘The music creator economy: The Rise of Music Publishing in India’. However, India’s global revenue ranking still trails other developed markets, the report stated.

At Rs. 12,000 crore, the report noted that the music industry contributes around 6% of the media and entertainment industry revenue. It added that music is integral to streaming, films, television, radio, gaming, and social media.

Music revenue from streaming and broadcast stood at Rs. 5,692 crores and Rs. 4,350 crores, respectively. Filmed entertainment and concerts & events contributed Rs. 1,200 crores and
Rs. 805 crores, respectively, to the overall music revenues.

The report added that the recorded music revenues of labels crossed Rs. 2,500 crores in 2022 and are projected to touch Rs. 3,600 crores in 2024. It noted that the music publishing revenue will touch Rs. 845 crores in 2022–23 and is expected to touch Rs. 1,690 crores by 2026–27.

Ashish Pherwani, Partner, Media & Entertainment, EY India, said the music segment’s sound recording revenues have been driven by both local and international labels for a long time.

He added that music publishing revenues remain much smaller, given the differing views on its applicability, litigation, and low awareness.

Of the Rs. 845 crores revenue earned in 2022–23, almost Rs. 525 crores of the music publishing revenue came from the Indian Performing Rights Society (IPRS), which pays royalties to music creators by collecting license fees on their behalf from music users.

About Rs. 320 crores of music publishing revenue was earned by the music publishers directly. “The IPRS has over 13,500 authors as its members and continues to grow its revenues as more music users comply with publishing requirements,” Pherwani noted.

According to the report, Indian songs are among the most popular in the world, holding seven spots on the Top Ten YouTube Global Charts for 2022.

The Indian music market is highly inclined towards film music, with 70% of music consumption and 75–80% of recorded music revenue being driven by film music. While India’s music business is governed primarily by the Copyright Act, divergent court decisions have resulted in differing viewpoints on its applicability and/or its quantum, the report stated.

This divergence in implementation, it added, has resulted in low compliance with the Copyright Act.