Indian music industry is punching below its weight having the world’s second-most populated nation and seventh-largest economy but standing 15th in the world in terms of music industry size. This is the conclusion of the Economic impact of the recorded music industry in India, a recently published report conducted by Deloitte for the Indian Music Industry (IMI).
The recorded music industry in India is sized at INR 1,068 crore – £121m – about 0.006% of the country’s GDP), and is estimated to provide direct employment to 1,460 people. However, as music is raw material for several sectors, the music industry produces an impact that is disproportionate to its own scale.
As music flows to its ‘formal’ partner industries of television, radio, live events, films, and audio OTT, it is estimated to represent revenues of INR 8,660 crore (8.1 times the size of the recorded music industry) and full-time-equivalent employment of 38,600 (25.2 times the employment generated by the recorded music industry).
The report goes on to say that, ‘In addition to the formal partner industries, several informal users/sectors, which engage with large sections of society, derive value from music – these include brass bands, small gymnasiums, restaurants, and parlours. This report does not attempt to size this segment of users.
Last, but certainly not the least, music also creates an impact beyond the formal and informal usage detailed above. These are in areas that do not lend themselves to quantification – such as acting as a force for national integration and a tool to expand India’s culture and influence.’
The report also highlights that piracy, the value gap (sustainable sharing of value across the music value chain), and regulatory impediments (notably statutory licensing) are some of the key challenges that the recorded music industry in India faces.
The Indian Recorded Music Industry in numbers
- Revenue INR 1,068 crore1 (0.006% of GDP) – £121m
- Employs 1460 Full Time Equivalent people
- Average Indian internet user spends 21.5 hours every week listening to music compared to the global average of 17.8 hours
- Fuel for the INR 3,130 crore private FM radio broadcast industry
- Content for the INR 6,500 crore live events industry
- Raw material for very popular music and talent shows alongside backdrop scores (TV serials) for the INR 74,000 crore TV broadcast industry
- Fuel for the INR 17,500 crore feature film industry on a pan-India basis, providing funding through purchase of audio rights
Blaise Fernandes President and CEO, The Indian Music Industry (IMI) said, “When IMI embarked on drafting this report, the first of its kind for the recorded music industry in India, the objective was not only to highlight its economic contribution, but also to throw light on the lopsided revenues returned to the recorded music industry, driven by legislation that may not be relevant in today’s times.”
The full report (27 page PDF) is freely available and can be downloaded here.
