Affordable subscriptions, broad content selection drive audio entertainment growth

The advent of artificial intelligence and the creation of more regional content is only expected to spur growth on these platforms, with some shows earning as much as $100 crore, company executives and investors said.

This growth is reflected in the revenue figures of these platforms. Pocket FM global revenue grows more than sixfold $1,050 crore in FY24, reducing losses by 21% $1.65 billion rupees. Subscription revenue surged to $934 Crores Rs. $160 crore in the last financial year.

Ranjeet Pratap Singh, co-founder and CEO of Pratilipi, said that while Pratilipi’s audio content vertical, Pratilipi FM, only accounts for a small part of the company’s overall business, from August to In November, it increased by 300%.

Bengaluru-based Kuku FM has more than doubled its revenue and expects to continue its growth momentum in FY25, co-founder and CEO Lal Chand Bisu saidMint.

“We are working together to expand our content library and create awareness about the audio category,” said Bisu, noting that regional languages ​​such as Hindi, Tamil and Marathi continue to drive user adoption of the platform frequency.

Pocket FM chief financial officer Anurag Sharma told Mint that the company’s focus is on increasing user engagement, which currently stands at 120 minutes per user per day.

“A lot of our engagement is driven by its original and exclusive programming, and we want to continue to diversify our content,” he said.

Singh said Pratilipi has raised about $80 million so far, turned cash flow positive in July, and is in talks to raise about $10-12 million in the coming months to prepare for a public market listing in 2026.Mint.

“We hope to select our bankers by June-July next year and then see how the process unfolds,” he added.

growth drivers

Brijesh Damodaran, managing partner at early-stage venture capital firm Auxano Capital, said the freemium model – a mix of free and premium content – coupled with affordable subscription prices, along with the anvil of artificial intelligence and personalization, has helped drive revenue growth .

“Content expansion, innovative monetization and technology are contributing to this journey. User retention along with AI-driven efficiencies and global expansion should drive growth,” Damodaran added.

Audio as a category is quite new to India compared to films and videos. However, according to Redseer Strategy Consultants, long-form audio novels have strong potential in terms of user engagement, entertainment and user penetration space.

More than 80% of audio series users are paying subscribers or mature Internet users. The market research firm noted that their spending on audio series currently accounts for approximately 50% of their total media and entertainment spend, indicating high monetization potential.

Redseer said the number of users in the Indian audio series market is expected to grow from 350 million users in 2023 to 540 million users in 2027.

This form is popular among all ages. Vedika, a 32-year-old beautician from Jaipur, finds Pocket FM’s Hindi novel series makes her daily commute to work entertaining. Manohar, a 46-year-old real estate agent in Bengaluru, has subscribed to Kuku FM for two years.

The growth in the audio content segment is driven by increasing platform adoption in tier 3-4 cities and rising demand for local content and emerging genres such as fantasy and self-help. Growth capital firm Playbook Partners.

Kuku FM initially offered content only in Hindi and last year expanded to six regional languages. Bisu said that with the launch of English, the company will increase its focus on first-tier cities, which account for about 30% of its revenue. Currently, it has over 3 million subscribers and hopes to reach 3.5 million by the end of FY25.

Chief Financial Officer Sharma said Pocket FM has identified some high-frequency hits and adapted them into local languages, which will help penetrate beyond metropolitan areas.

“Globally, we have seven shows that have entered $100 Crore Club. Another 30 performances are taking place $100 million club. We have successfully increased our frequency based on these areas of strength,” Sharma said.

Among them, its $100 Crore Show is⁠Insta Empire,⁠⁠Saw a girl and⁠⁠Insta Millionaire. About 70% of Pocket FM’s revenue comes from the United States, and the company is currently working on launching in multiple languages ​​in the European Union.

emerging technologies

As in many fields, artificial intelligence is being widely used in audio series to improve the quality of production.

Pocket FM has integrated artificial intelligence into its operations to improve content creation and listener engagement. Over 40,000 AI-generated audio series, generating over $The company, which has revenue of Rs 25 crore, also leverages tools to streamline operational efficiency and personalize recommendations.

Bisu said Kuku FM uses generative artificial intelligence to perform tasks such as translation without the need to deploy additional resources.

“Scalability and cost efficiency, as well as personalization and accessibility, are positives. But in addition to quality issues, job losses are also an economic challenge. Additionally, overreliance on algorithms may limit content discovery,” said Auxano Capital’s Damodaran .

“Going forward, the integration of AI into content creation and distribution is inevitable. While AI reduces production costs and expands the scale of storytelling by stitching together narratives, human creativity remains the backbone of authenticity and emotional depth .Achieving this balance will define the future of audio content,” added Playbook Partners’ Choudhury.