Blaise Fernandes is the boss of Indian music industry body IMI. He’s been talking to Exchange4Media about the challenges for the streaming music market [‘audio OTT’ is the preferred phrase there] in India.
“OTT is our growth engine and data published by OTT players indicated a 40% growth rate on the 1st half of CY2020,” said Fernandes. “The problem lies in a very low subscriber base in India. It is estimated that the combined paid subscribers will be just about 1 million.”
Fernandes went on to estimate that there are around 300 million monthly active users of audio streaming services, so that’s a conversion rate of just 0.33%.
“IMI is optimistic that the Indian consumer is ready for a subscription model, but the rates will have to be tiered,” he said. “There has to be multiple price points offering services and options based on what the consumer pays.”