Creator-friendly Models Set To Bring Structure Shift

The Internet is said to have brought a level playing field for individual creators, including musicians. With lowered entry barriers via platforms like Spotify and YouTube, anyone can get started pretty easily. Though distribution does not necessarily guarantee discoverability, which is still governed by algorithms—pretty much like black boxes—and, of course, ‘virality’.

For artists globally, models like revenue sharing and royalties remain the core of long-term financial security. India is also joining the bandwagon: according to the CISAC Global Collections Report, creator royalty collections in the country rose 40 percent in 2024, representing one of the fastest growth rates worldwide. Of these, over 80 percent are driven by digital distribution, pretty much in line with changing music consumption behavior.

While the trend is encouraging, there is still much room for growth and improvement. One of the fundamental challenges is accepting upfront flat-fee buyouts, giving away long-term rights to legacy labels.

According to Sunny Rajput, a cinematographer and production manager, reasons for upfront flat-fee buyouts can differ for independent artists.

“A lot of independent artists in India still prefer upfront payments because they need money to produce music, shoot videos and manage day-to-day expenses. That’s just the reality. At the same time, artists are becoming more aware of the value of owning their music. If a platform helps creators earn in the long run while also supporting them in the early stages, I think many artists would be willing to consider it,” he said.

The trend is in stark contrast with the West, where artists get revenue share and long-term royalties too.

Music composer and producer Abhijit Vaghani recently highlighted the same issue in the Indian music industry.

“If I’m a new music director or singer, it will take me a long time to establish myself. Maybe this outright system is helpful for everyone. In independent music, however, we are seeing a rise in the revenue-sharing model, where everyone receives an equal share. As a song becomes successful, those royalties continue to grow over the years. It takes time, but the earnings can eventually become substantial,” he is quoted as saying.

Speaking to Entrepreneur India, independent music artist ‘Zaden’ explains that it’s a bit more complicated structure. While established artists can bargain for revenue sharing and so on, newcomers struggling to get views on their own may need help from larger labels to push. Working with labels, even with buyout formats, gives a push to a newcomer’s career initially, as even social media platforms are getting increasingly crowded and competitive.

“There are both good and bad to the current structures, and it may suit individual to individual… though every artist dreams of becoming self-reliant and financially independent at some point,” he said.

A 2023 EY survey, in which 500 creators participated, indicated that their financial income is unpredictable and often limited. The survey disclosed that working outside of the traditional employer-employee relationship, one-time payments (upfront fees) and live performances were the primary sources of income for most creators.

While the 2023 report indicated the challenges, it also said that as opposed to global music markets which are artist-driven, the Indian music market is highly inclined towards film music, with 70% of music consumption being film-driven and 75-80% of recorded music revenue in India being film-based. This, however, is likely to shrink as more independent artists become mainstream.

High-Volume, Low-Monetization

As mentioned above, the macro opportunity in India is massive, but monetization remains a challenge.

According to a recent EY and the Indian Music Industry (IMI) report, India had nearly 14 million paid music subscriptions in 2025, estimated to grow to 28 million to 30 million by 2028, supported by product innovation, partnerships, and evolving consumer preferences.

The EY–IMI report is based on a survey of more than 15,000 smartphone users across India and explores music consumption behavior, subscription trends, and factors influencing willingness to pay for music services. The findings indicate that music engagement remains exceptionally strong, with 96% of smartphone users listening to music and four out of five listeners spending more than one hour each day consuming audio content.

Monetization, however, remains the challenge:

While 86% of respondents reported paying for video OTT (Over-the-Top) services at some point, only 38% said they had ever paid for a music streaming service, including where bundled. According to the EY–IMI analysis, the widespread availability of free alternatives and limited differentiation between free and premium offerings continue to influence subscription adoption.

New Playbook: Creator-First Models

To address the paradox of massive consumption and sustainable monetization, there has to be a complete overhaul of the structure wherein creators’ rights are prioritized.

For instance, DistroKid is a digital music distribution platform that enables independent artists to upload unlimited songs and albums to major streaming platforms like Spotify, Apple Music, and TikTok. The platform also allows artists to keep 100% of their royalties for a flat annual fee.

In India, there are distributors like TuneCore India, which has a similar structure but with localized features such as support for hosting content on Indian platforms like JioSaavn and support for INR.

However, artist management and development still remain a gap.

The UK-based Virtuoso, which recently entered the Indian market, is experimenting with a newer model wherein the focus is on original music production, artist development, and rights management.

Virtuoso is introducing creator-first structures designed to align the interests of creators and partners over the long term. The company believes this approach supports stronger creative relationships, encourages long-term investment in talent, and helps build a more sustainable foundation for artists, collaborators, and the music they create.

It further said it will work with talent and rightsholders across the country to develop, manage, and release music. The company will invest directly in marketing and release infrastructure behind each project, and will pursue sync licensing, brand partnerships, and international placement opportunities to extend the reach of Indian repertoire into global markets. Catalog management for existing rightsholders will also form part of Virtuoso’s India offering, giving established catalogs access to the company’s rights management and distribution infrastructure.

Speaking to Entrepreneur India, the company’s Head of Digital Strategy Andrew Smith explains: “Our focus is creating original repertoire with Indian talent and building a catalogue that is authentically Indian and loved the world over. At the centre sits our creator-first model, where talent holds a genuine, long-term stake in the success of their work. When talent is invested in what their work earns, quality compounds, and that builds a catalogue with lasting value for artists and stakeholders alike.”

The India foray also marks Virtuoso’s entry into South Asia.

Sahaj Miya, Head of New Business & Music, adds: “India has always been culturally significant, and it’s now becoming a central force in music worldwide. We’re seeing streaming, live and long-term catalogue monetisation grow at a phenomenal pace, backed by the breadth of regional language markets and the depth of artistry across the country. As India’s music economy scales, we’re here to invest in that growth, bringing our creator-first model built on artist equity and creating opportunities for Indian talent and catalogue, in India and worldwide.”

That said, Virtuoso’s first slate of original music for India is already in production across Hindi, Punjabi, Tamil, and Telugu, with initial releases planned for early next year. The firm will announce its first artist and industry partnerships in the coming months. Each one rests on the same foundation: repertoire in which the people who create it hold a lasting stake.

If newer models that are artist-friendly work, it could pave the way for new and existing independent artists to sustain their careers, and possibly even disrupt the industry.