You can’t touch music but music can touch you – music, indeed, is a segment which will remain the favourite for many of us, irrespective of where and who we are.
While the Indian music scene has traditionally been driven by Bollywood, changing demographics, enormous exposure to internet, which means exposure to global music trends, and a progressive youth culture are leading to evolving tastes and this growing market is set to be much more diverse in the future. India’s music tastes are changing and with young consumers increasingly open to modern interpretations of the traditional Bollywood sound, many media houses have started to invest in this area. As the market improves, and a growing middle-class starts to embrace its own popular culture, it is believed that India could become the second-largest market in Asia.
The music segment in India has evolved tremendously over the last decade and it is seeing an interest from international artists and businesses to explore this market. The recorded music business in India is believed to become a top 10 global market by 2019, according to a report by KPMG. According to the projections, India’s recorded music business should nearly double in the next 5 years and will be bringing in an annual income of around Rs 19 billion by 2019.
The analysis from KPMG shows that the cash bifurcation of the Indian music segment is: 55% from digital music (downloads and streaming), 20% from physical, 10% from public performance and 20% from TV and Radio (also performance royalties, but split out).
On the negative side, the music industry in India is badly impacted by piracy which leads to a 30% decline in physical sales as well as caller ring back tones. Only 1%-2% of music is consumed legally. KPMG is of the opinion that even if a small percentage of this activity can be curtailed in this super-populated country it would be optimistic news for the music business.
Music (Audios, CDs etc) is offered by online as well as offline retailers. The music business contributes significantly to the overall online retail industry in India. As e-commerce grows, and offline retailers are unable to match the huge discounts offered by online retailers, traditional music stores are either shuttering outlets or wrapping up.
One significant example is PlanetM, a part of Videocon-owned Next Retail, which has been closing stores since 2012. Due to increasing competition from online stores, PlanetM has adopted a kiosk-based model for expansion which saves lease rentals.
Most of the leading e-commerce portals including Amazon, Junglee, Snapdeal, FlipKart and Myntra have a section dedicated to Music from where customers can buy their choice of Music Audios and CDs at discounted rates.
Apart from the regular e-commerce stores, there are some stores which are dedicated to the Music sector. Such stores include:
Some of the leading books and online stores in India (both online and offline) include: