Some industries collapse quietly. The music business didn’t.
In 1999, it was worth $22 billion. Fifteen years later, piracy had gutted its revenues by 40%. The internet made music free, and global box office earnings were double the size of recorded music.
Then came streaming. What began as a defence against piracy became the most profitable model in music history, one that is recurring, global, and infinitely scalable.By 2024, recorded music revenues had climbed to $30 billion, matching the global box office for the first time in decades.
And India is no bystander. Today, it is one of the world’s largest music markets by consumption, with homegrown labels like T-Series and Zee Music commanding global streaming charts, and a live concert economy expanding at double-digit rates.
This week, I want to unpack the industry’s stunning turnaround.
In this edition, we cover –
- The great revenue reversal: how streaming rescued a dying industry
- The streaming economics revolution
- India’s soundtrack to the world – the big picture
- From streams to screams: the live music surge
- The investment thesis: 3 ways wealth creators can play the music boom
Let’s dive in:
The great revenue reversal: how streaming rescued a dying industry
To understand the magnitude of this achievement, we need to rewind to 2001.
The music industry was hemorrhaging revenue as digital piracy gutted traditional sales models. Global music revenues plummeted from $22.2 billion in 1999 to just $12.9 billion by 2014, a devastating 40% decline that lasted over a decade.
Meanwhile, the movie industry continued to grow. Cinema ticket prices rose, international markets opened up, and later, streaming video platforms expanded distribution. By 2014, the gap between the two industries had widened to over $20 billion, with movies generating $34 billion compared to music’s $14 billion.
The turnaround began around 2015 with the mainstream adoption of streaming services like Spotify and Apple Music. In markets like the US, UK, and later India, these platforms created a better consumer experience: legal, convenient, and affordable. The economics were also transformational.
In the old model, a listener might spend $15 to $20 on an album once, playing it for years without generating further income for the industry. With streaming, that same listener pays $10 to $12 a month, generating $120 to $144 annually, potentially for decades. Crucially, this revenue is recurring, predictable, and not dependent on constant blockbuster releases.
Streaming also rewrote the cost structure. Physical production, retail distribution, and shelf-space limitations were replaced by near-zero marginal distribution costs, infinite library capacity, and real-time data on listener preferences. This “long tail” meant that even niche artists could find sustainable audiences globally.
By 2024, global recorded music revenues had climbed back to $30 billion, matching the global box office collections for the first time in decades. The industry’s lost decade had given way to its most profitable era yet, a recovery powered by subscriptions and digital scale.
The streaming economics revolution
If streaming saved the global music industry, it supercharged India. Jio’s entry in 2016 made data cheap and reliable, so listening moved to mobile apps at scale. Platforms like Gaana, JioSaavn, Wynk, Spotify, and YouTube Music met that demand with vast catalogues and low-friction onboarding.
The money flow is straightforward. Streaming services sign licensing deals with labels and publishers, then pay creators per stream. Think of it as a micro-royalty on every play, often ₹0.10–₹0.15 per stream in India, with rates varying by platform and contract. To fund those payouts, platforms run ad-supported free tiers that deliver millions of impressions monthly, then convert heavy users into paid subscribers.
This model dominates globally. As the format split chart shows, streaming forms 69% of global recorded music revenue.
In India, the skew is even sharper; industry estimates suggest that over 80% of recorded music revenue comes from streaming.
Streaming also reshaped the economics for creators. The traditional value chain from creation, to rights licensing, to production, distribution, and monetisation has compressed. (See the music value chain diagram.) Today, a songwriter can record a track, distribute it digitally, and monetise through platforms without navigating the constraints of physical distribution or limited shelf space.
This has unlocked what economists call the “long tail” effect, i.e, the ability to monetise a large number of niche products that individually sell in small volumes but collectively generate significant revenue. In the old system, only the top 10% of artists could secure meaningful distribution. Now, regional and independent musicians can build sustainable careers with as few as 1,000 dedicated fans. For India, where 20,000+ songs are released annually across dozens of languages, streaming platforms have become both a distribution engine and a discovery machine.
By collapsing barriers to entry, streaming has given every Indian artist a shot at a global audience.
India’s soundtrack to the world – the big picture
A high-volume, film-led industry
- Over 20,000 original songs are released annually by more than 40,000 creators.
- 70% of music consumption comes from film soundtracks.
- 75–80% of recorded music revenues are tied to movies.
How film marketing fuels music hits
- Songs are often released as part of a movie’s promotional cycle.
- Benefit from film star power, marketing budgets, and cross-media coverage.
- Leads to blockbuster spikes in streaming numbers.
India’s unmatched YouTube footprint
- Alka Yagnik was the most-streamed artist globally for the fifth year in a row in 2024, with 19.1B views.
- In 2024, 8 of the top 10 and 19 of the top 50 most-viewed global artists were Indian.
- Devotional content travels far: Shri Hanuman Chalisa video has crossed 4.7B views.
Labels that dominate the global stage
- T-Series: 301M subscribers, 307B total views, the most-subscribed YouTube channel in the world.
- Zee Music: 119M subscribers, 80B views.
- Few other markets have label brands commanding this scale of direct-to-fan reach.
A growing space for independent voices
- Streaming platforms and social media are enabling non-film and regional artists to build audiences.
- Signals a gradual shift towards a more artist-led market alongside the traditional film-driven model.
From streams to screams: the live music surge
While streaming drives everyday listening, the fastest-growing segment of India’s music business is live entertainment. In 2024 alone, the country hosted more than 30,000 concerts and performances across 319 cities, a scale that reflects how deeply live music has entered the cultural calendar. This surge includes stadium tours, arena shows, and boutique festivals that draw fans from across the country and abroad.
In recent years, India’s live music calendar has been stacked with both global icons and homegrown stars. Ed Sheeran, Maroon 5, Bryan Adams, Dua Lipa, Justin Bieber, U2, OneRepublic, Katy Perry, and Armin van Buuren have all taken the stage here, sharing billing with Punjabi powerhouse Diljit Dosanjh and other Indian favourites. Coldplay’s Music of the Spheres tour sold out its first two India dates in minutes, while Ed Sheeran’s seven-city run drew packed crowds, setting a template for multi-city international tours in the country. With more big-ticket acts and festivals already lining up, the momentum shows no signs of slowing.
Live music is now a major revenue engine for the industry, generating ₹1,300 crore in 2024 on the back of higher ticket prices, sponsorship deals, and premium experiences such as VIP access and meet-and-greets. Big-ticket festivals like NH7 Weekender, Sunburn, and Lollapalooza India have set new benchmarks for production quality and artist line-ups, blending global headliners with homegrown talent.
Global trends show how powerful live music can be as an economic driver. The phenomenon dubbed “Swiftonomics” has seen Taylor Swift’s Eras Tour projected to generate over $4 billion in economic impact in the United States, as fans spend on travel, hotels, dining, merchandise, and local experiences around her shows. While India has yet to host an event on that scale, the principle holds, big-ticket tours can ripple through entire city economies, benefiting sectors far beyond the music industry.
The investment thesis: 3 ways wealth creators can play the music boom
This industry transformation has opened multiple investment avenues that India’s wealth creators are beginning to recognise. Among the ultra-wealthy, music patronage is also emerging as a status symbol, funding artist tours, backing exclusive album launches, or hosting private performances has become a way to combine cultural influence with personal brand-building.
1. Music rights as alternative assets
Perhaps the most intriguing development is the emergence of music royalties as an alternative asset class. Companies like Hipgnosis Songs Fund have raised billions to acquire music catalogs, treating hit songs like income-generating real estate.
The math is compelling: established hits with proven longevity can generate predictable cash flows for decades. Bob Dylan sold his catalog to Universal Music for reportedly $400 million in 2020. Bruce Springsteen’s catalog sold for $500 million in 2021.
2. Platform and technology plays
The streaming revolution has created massive value for platform operators. Spotify, valued in excess of $140 billion, essentially built a $17 billion annual revenue business by solving distribution and discovery problems.
But the opportunities extend beyond established platforms:
- AI-powered music creation tools
- Blockchain-based artist monetization platforms
- Virtual concert and metaverse music experiences
- Audio equipment for the “creator economy”
3. Direct artist investment
Perhaps most intriguingly, some investors are taking direct stakes in emerging artists. Platforms like Royal allow fans to purchase fractional ownership in song royalties, while others facilitate direct investment in artist development.
This democratization of music investment allows wealth creators to participate in the industry’s growth while supporting artistic development, combining financial returns with cultural impact.
In summary
The music industry’s revival is a case study in how an old business model can be rebuilt into a recurring-revenue machine, one that investors are now treating like prime real estate.
The next decade will bring seismic shifts to the music industry. AI-assisted music creation will lower entry barriers, while copyright tracking technologies can ensure faster, fairer royalty distribution. Metaverse concerts and immersive digital experiences could open new revenue streams and global audiences without physical constraints.
For wealth creators, the opportunity is threefold:
- Own the IP — Music rights can deliver decades of predictable cash flows.
- Back the platforms — Streaming and live events are still scaling in emerging markets.
- Invest in the ecosystem — From concert infrastructure to AI-driven creation tools.
The lesson is simple: great IP compounds. Songs, like strong investments, can create value long after their debut, if you own the rights and the audience keeps pressing play.
Disclaimer – The information provided herein is intended solely for educational purposes. In this material, Dezerv has utilized information through publicly available sources, and other data deemed to be reliable. All trademarks, logos, and brand names mentioned are used for identification purposes only and do not imply endorsement or recommendation.