Affordable subscriptions, wide content selection drive audio entertainment growth

The emergence of artificial intelligence and the creation of more regional content are only expected to spur growth for these platforms, with some shows raking in as much as ₹100 crore, company executives and investors said.

The growth is reflected in the revenue figures of these platforms. Pocket FM’s global revenue increased sixfold to over ₹1,050 crore in FY24, cutting losses by 21% to ₹165 crore. Subscription revenue surged to ₹934 crore from ₹160 crore in the previous financial year.

Pratilipi’s audio content vertical Pratilipi FM, although a tiny portion of the firm’s overall business, grew 300% between from August to November, said Ranjeet Pratap Singh, co-founder and chief executive.

Bengaluru-based Kuku FM’s revenue more than doubled and it expects the growth momentum to continue in FY25, Lal Chand Bisu, co-founder and chief executive officer, toldMint.

“We made a concerted effort to expand our content library and build awareness about audio as a category,” Bisu said, noting that regional languages Hindi, Tamil and Marathi continue to drive user frequency for the platform.

Pocket FM’s chief financial officer Anurag Sharma told Mint it is focused on improving user engagement from the current 120 minutes per user per day.

“A lot of our engagement is being driven by its original and exclusive shows, and we want to keep diversifying our content,” he said.

Pratilipi, which has raised about $80 million till date, turned cash flow-positive in July and is in talks to raise about $10-12 million in the next few months as it gears up for a public-market listing in 2026, Singh toldMint.

“We’re hoping to pick our bankers by June-July next year and then see how the process unfolds,” he added.

Growth drivers

According to Brijesh Damodaran, managing partner of early-stage venture capital firm Auxano Capital, freemium models – a combination of free and premium content – with affordable subscription pricing are instrumental in driving revenue, along with the anvil of artificial intelligence and personalisation.

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

Audio as a category is fairly new to India compared to movies and videos. However, audio fiction in longform format has strong potential across metrics including user engagement, entertainment, and headroom for user penetration, according to Redseer Strategy Consultants.

More than 80% of audio series users are paying subscribers or mature internet users. The amount they spend on audio series now accounts for roughly 50% of their total media and entertainment expenses, indicating high monetisation potential, the market research firm noted.

The market for audio series in India is expected to grow from 350 million users in 2023 to 540 million users by 2027, Redseer said.

The format is popular across age groups. Vedika, a 32-year-old beautician based in Jaipur, finds that Pocket FM’s Hindi fiction series makes her daily commute to work enjoyable. Manohar, a 46-year-old real estate agent in Bengaluru, has been a Kuku FM subscriber for two years now.

Growth in the audio content space has been driven by the increasing adoption of platforms in tier 3-4 cities, fuelled by the rising demand for vernacular content and emerging genres like fantasy and self-help, according to Vikas Choudhury, founder and managing partner of growth capital firm Playbook Partners.

Kuku FM, which initially offered only Hindi content, expanded to six regional languages last year. With the introduction of English, the company will intensify its focus on tier-1 cities, which account for around 30% of its revenue, said Bisu. It now has over 3 million subscribers and is hoping to touch 3.5 million by the end of FY25.

Pocket FM has identified some high-frequency hit shows and adapted them in regional languages, helping with penetration beyond metro cities, CFO Sharma said.

“Globally, we have seven shows that have each entered the ₹100 crore club. Another 30 shows are in the ₹10 crore club. We’ve managed to grow our frequency based on these strong areas,” Sharma said.

Among its ₹100 crore shows are⁠Insta Empire,⁠⁠Ek Ladki ko Dekha and⁠⁠Insta Millionaire. About 70% of Pocket FM’s revenue comes from the US and the firm is currently working on introducing multiple languages in the European Union.

Emerging technologies

Artificial intelligence, like in many sectors, is being widely used in audio series to enhance the quality of production.

Pocket FM has integrated AI across its operations to improve content creation and listener engagement. With over 40,000 AI-generated audio series generating more than ₹25 crore in revenue, it also leverages tools to streamline operational efficiency and personalise recommendations.

Kuku FM uses generative AI for tasks like translation, eliminating the need for deploying additional resources, according to Bisu.

“Scalability and cost efficiency along with personalisation coupled with accessibility is a positive. But alongside quality concerns, job displacement is an economic challenge. Also, over-reliance on algorithms can limit content discovery,” Auxano Capital’s Damodaran said.

“Looking ahead, integrating AI across content creation and distribution is inevitable. While AI reduces production costs and scales storytelling by stitching narratives, human creativity remains the anchor for authenticity and emotional depth. Striking this balance will define the future of audio content,” Playbook Partners’ Choudhury added.