thereport ISSUE 423 | 23 MAY 2019 YouTube’s India opportunity Why the world’s biggest music streaming service is riding high in the industry’s next key growth market 1 ISSUE 423 23.05.19 YOUTUBE INDIA just views). In fact, it will soon be the first channel to reach 100m subscribers on the platform. Meanwhile, as music:)ally writes this introduction, two of the top three artists on YouTube globally, according to the service’s charts, are Indian: Alka Yagnik and Neha Kakkar. In the week of Ed Sheeran’s re-emergence with a Justin Bieber duet, his 141m weekly views lagged behind Yagnik’s 180m and Kakkar’s 171m. Two more Indian artists, Kumar Sanu and Udit Narayan, were inside the top 10 of this chart too. All this is the backdrop to YouTube’s announcement that it has 265m active users in India, while its recently launched India is the fastest- YouTube Music app zipped to 15m growing market downloads within a few weeks of launch. for Google’s video In one of the most eagerly watched ‘high- potential’ markets for recorded music, service, with YouTube is already the biggest player, music to the fore despite intensifying competition among audio streaming services. The two main figures we have from YouTube are the 265m active users (for the overall platform) and 15m downloads (for the YouTube Music YouTube’s India opportunity app). But some recent industry studies have provided more insight into e can date music:)ally’s interest T-Series was the 15th biggest channel that diaspora elsewhere) made its status in India. in YouTube, India and music month with 226.7m views. waves globally. A report published back to a story we wrote for our Over the following months we tracked Fast forward to May in March 2019 by the bulletin on 1st May 2015. its rise – and by October 2016 T-Series 2019 and T-Series has Federation of Indian WThe focus was on Taylor Swift’s status was the most popular YouTube channel by just become the most Chambers of report as the most popular musician channel on views (712.7m that month). It was one of popular YouTube Commerce and YouTube in March that year, but in passing the first times that the demand for music channel for Industry we noted that Indian music company videos by people in India (and the Indian subscribers (not (FICCI) and the Neha Kakkar 2 ISSUE 423 23.05.19 YOUTUBE INDIA EY (pictured right) explored India’s by the IFPI’s reckoning. That’s thus a interviewed YouTube’s Pawan Agarwal wider media and entertainment smaller percentage for video of labels’ and Lyor Cohen to get their perspectives; sector, music included. revenues than is suggested by the FICCI profiled the five biggest Indian stars on One of its claims was that while report. YouTube globally; looked at T-Series’ around 150m people in India used Another report published in February recent dethroning of PewDiePie at the top audio streaming music apps in 2018 2019 by Indian industry body IMI with of the YouTube pile; and recapped what “around 250m people watched music Deloitte (pictured below right) explored the key local audio streaming services are on YouTube”. other topics, including the potential up to. That would be a huge percentage provided by the Indian diaspora. Plus, if you missed it earlier in the of YouTube’s overall user-base in “The Indian diaspora in the United month, we’ve included journalist Amit India. YouTube is also listed as the States and Canada represents a major Gurbaxani’s piece for us on Spotify’s most popular way 18-34-year-old opportunity for growth of the Indian launch in India and how that streaming consumers in India discover music, recorded music industry. With the service stands in competition with ahead of Facebook and Instagram. advent of audio OTT platforms, rising YouTube and others. :) The report also claimed that global reach of Bollywood and digital accounted for 83% of labels’ traditional music streaming revenues in India in 2018, and that services, Indian music “YouTube accounted for 40% of the today has a far wider reach digital revenues for labels” – which compared to a few years ago,” suggests that YouTube was a third of it claimed, suggesting that the their revenues overall. diaspora is nearly 5m people in This highlights one of the North America alone. tensions around YouTube in India: Audio streaming services it’s a significant revenue generator like JioSaavn and Gaana now, but might its popularity have are targeting these overseas a negative impact on efforts by listeners, while Spotify’s the audio streaming services to launch of its Desi Hub last convert free listeners into paying year also attempted to serve subscribers? biggest reach among Indian internet global listeners with Indian “Only 1-1.5 million listeners paid for users, with penetration of 93% – ahead music, ahead of its launch in the music,” claimed the report, citing “the of Facebook (89%), WhatsApp (82%) and country. wide availability of music on services Instagram (69%). But YouTube may be the such as YouTube” as well as piracy as Indian label sources also point to the platform best positioned to presenting “considerable challenges in IFPI’s recent Global Music Report, which capitalise on the Indian diaspora, persuading users to pay for the benefits of claimed that the trade value for video particularly for film music, where streaming”. It cites a statistic from an IFPI- streams of music in India in 2018 was the video is a crucial part of the commissioned report suggesting that “52% $28.3m, up from $24.8m the previous experience. of survey respondents didn’t pay for music year, and just $4.6m the year before that. In any case, there is plenty to report as they felt YouTube met all their needs”. This would peg video revenues at unpack about what’s happening The report also claimed that YouTube around 21.4% of the overall recorded with YouTube and music in India. was the social media platform with the music market in India – some $132.3m In this music:)ally report, we’ve: the 3 ISSUE 423 23.05.19 YOUTUBE INDIA ‘2019 will be the year of Alka Yagnik Indian music’ YouTube’s Pawan Agarwal talks YouTube’s rapid growth in India and what it means for music The YouTube journey in India is incredibly inspiring and deeply rooted in India’s internet growth story – Pawan Agarwal, YouTube ndia is YouTube’s fastest-growing market, crossed the million-subscribers mark for “We have also invested in building value of music and the literal value that with 265m users as of April 2019, which their channels – up from just two creators a vibrant creator community and deep people are willing to pay. Technology and means the service is reaching more than five years ago. partnerships across the content industry – new business models have completely 20% of the population there. music:)ally talked to Pawan Agarwal, ranging from the Indian film industry, cable changed the established distribution I “India is now both our biggest audience YouTube’s head of music content and satellite broadcasters, across the length channels that have long served the and one of our fastest-growing audiences in partnerships for India and south Asia, to find and breadth of the country.” recorded music industry,” he says. the world,” said CEO Susan Wojcicki as the out more about what’s happening in India, A recent study published by the Federation “We made an enormous investment to milestone was announced. She added that and what it means for music. of Indian Chambers of Commerce and launch YouTube Music, a music product in the past year, YouTube consumption on “The YouTube journey in India Industry suggested that YouTube generates based on YouTube’s amazing breadth mobile in India grew by 85%, while 60% of is incredibly inspiring and deeply around 40% of labels’ digital revenues in and depth of catalogue. We believe in a its view time was coming from outside the rooted in India’s internet growth story; India. Agarwal sees that as reflecting longer- twin-engine growth story – advertising report country’s six largest metro areas. improved access and low-cost data have term trends in the country. and subscription. We are therefore staying Wojcicki also revealed that more than turbocharged the growth of YouTube in “Over the last two decades we have laser-focused to deliver reach and revenue 1,200 YouTube creators in India have India,” he says. seen dramatic shifts, both in the inherent for the artist community.” the 4 ISSUE 423 23.05.19 YOUTUBE INDIA YouTube Music launched in India in which consolidates an artist’s presence March, alongside its sister subscription- on YouTube; the launch of YouTube charts tiered YouTube Premium. The YouTube in more than 45 countries around the Music app was downloaded 3m times in world; and expanding credits to artists and its first week, and by the end of April had songwriters for recorded music in YouTube reached 15m downloads. videos. Indian artists are also getting the India has been a tough market, thus far, familiar guidance on using YouTube’s for subscription music. Agarwal says that creator tools. YouTube does see potential in persuading “YouTube is also the only platform where people to pay, with the free tier of YouTube artists can have both social and commerce Music functioning partly as a funnel. footprint. With social features like stories, “The streaming market is multi-segment. community posts, premieres and live There are users who want an accessible, streams, YouTube enables direct-to-fan ad-supported experience.