Indian management consultancy firm RedSeer has published a report about the ‘audio OTT’ (i.e. music streaming) market there, including exploring the potential for growth in paid subscriptions.
Some of the figures are familiar: for example its claim that only around 1% of current listeners are paying for subscriptions, but that the average revenue per subscriber is ’80 times’ that of ad-supported free listeners.
The report also makes an estimate about the sweet spot for subscription pricing that may tempt more people to start paying (and apparently 62% of those surveyed by RedSeer are open to the idea). The price that would apparently convince most to start paying is 25 rupees a month. The not-so-good news: that’s a long way from current monthly pricing in India: Spotify costs 119 rupees a month for an individual premium subscription, for example, while Bytedance’s newly-launched Resso is 99 rupees a month (except on iOS, where it’s 119 rupees). The report also suggests that the Indian services could start turning a profit if they can get around 6% of their listeners to subscribe.
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