Pawan Agarwal: Navigating the Dynamics of India’s Booming Music Streaming Industry

Over the past decade, the landscape of music consumption in India has undergone a revolutionary transformation, marked by the rise of streaming platforms that have made music accessible, diverse, and tailored to individual preferences. Pawan Agarwal, Head of Music Content Partnerships (India & South Asia) at YouTube, has played a pivotal role in steering this transformative journey, capitalizing on India’s growing digital ecosystem.

A decade ago, streaming music in India was constrained by slow data connections and limited access, predominantly tied to desktop computers. The emergence of smartphones and enhanced data speeds has since catapulted music streaming into the mainstream. According to the 2019 IFPI Global Music Report, a staggering 78 percent of recorded music industry revenues in India now stem from digital distribution. Pawan Agarwal, instrumental in shaping YouTube’s music streaming endeavours in India, recognizes the seismic shift in music consumption patterns. “Everything has changed in music,” observes Rishi Malhotra, CEO of JioSaavn. The transition from albums to singles, the shift from annual to quarterly releases, and the increasing reliance on data-driven insights have become defining features of the contemporary music scene.

An August 2019 KPMG report sheds light on the exponential growth of music streaming platforms in India. Monthly active users (MAUs) on these platforms witnessed a remarkable 50 percent increase, soaring from 110 million in March 2018 to 165 million in March 2019. The music streaming industry is poised for continued expansion, with a projected 20 percent growth between FY19 and FY24. While Bollywood music continues to dominate the streaming charts, international and regional music genres are experiencing rapid growth. Homegrown platforms such as Gaana, Wynk, and JioSaavn, as well as international giants like Amazon Prime Music, YouTube Music, Apple Music, and Spotify, collectively contribute to the diverse musical tapestry available to Indian audiences.

The revenue models for streaming platforms typically revolve around premium, subscription-based services and ad-supported freemium models. Ads contribute to a substantial 90 percent of revenues, with subscriptions making up the remaining 10 percent, as per the KPMG report. The advent of international platforms like Spotify and Apple Music, alongside homegrown counterparts, has intensified competition and spurred innovation. To stand out, streaming platforms are increasingly investing in original content. Gaana, for instance, has expanded its Gaana Originals, launching two seasons in a year. Pawan Agarwal’s YouTube has become a significant player, offering content in 10 Indian languages, including a diverse range of songs, albums, playlists, and live performances.

Recognizing the diversity of Indian musical tastes, platforms are capitalizing on regional content. JioSaavn, initially a Bollywood music distributor, now boasts content in 16 Indian languages. Gaana’s CEO, Prashan Agarwal, emphasizes the popularity of Punjabi content, constituting 35 percent of Gaana’s streamed content. The rise of regional artists on social media platforms, such as YouTube sensations with millions of subscribers, further underscores the demand for diverse regional content.

Despite the rapid growth in legal music streaming, piracy remains a significant challenge. In a country where three out of four internet users resort to pirated music, the per capita revenue for audio streaming in India is comparatively low. Pawan Agarwal highlights India’s position as the global piracy capital but sees streaming platforms as a potent solution to reverse the industry’s declining fortunes.

Affordable streaming options have played a pivotal role in rejuvenating the music industry, offering an attractive alternative to declining CD sales and revenues. Pawan Agarwal, along with his counterparts in the industry, recognizes that mass adoption of premium subscription models is crucial for sustained growth, benefiting artists, producers, and platforms alike.

As India’s music streaming industry continues its upward trajectory, Pawan Agarwal remains at the forefront, navigating the dynamics of this vibrant landscape. With an ever-growing user base and a commitment to original and regional content, YouTube, under Agarwal’s leadership, is poised to shape the future of music streaming in India.