The Rise of South Asian Music in the U.S. Market
Warner Music Group (WMG), the third-largest music label by market share, is making a significant move into the burgeoning South Asian music movement with its latest venture, 5 Junction. This new initiative, spearheaded by music strategist Anjula Acharia, is actively investing in South Asian talent within the United States, recognizing a substantial and expanding market opportunity. As the global music industry continues to evolve and embrace diverse sounds, South Asian music is poised to follow the trajectory of global phenomena like K-pop and Latin music in the U.S. market.
Acharia, who previously launched superstar actress Priyanka Chopra Jonas into Hollywood in the early 2000s, recalled her label partner Jimmy Iovine’s early skepticism. At the time, Iovine, known for his work with artists like Eminem and Lady Gaga, suggested she was two decades ahead of her time in attempting to bring South Asian talent to the U.S. audience. Now, twenty years later, Acharia, as the founder and CEO of 5 Junction—a joint label with Warner Music Group—is focused specifically on investing in South Asian artists. She notes the significant shift, observing, “With the explosion of people like Diljit Dosanjh and Karan Aujla… there’s all these South Asian acts that are coming here and really selling out, particularly in the live arena,” Acharia told CNBC.
The South Asian music market in the U.S. has historically been underserved, but with the increasing globalization of music, talent from South Asia is presenting a compelling case to investors as the next major business opportunity. This trend mirrors the success seen with K-pop and Latin music acts. Global music revenues are experiencing record highs, projected to surpass $30 billion in 2025, according to the International Federation of the Phonographic Industry. Spotify reported a significant surge in international streams for Indian artists, growing by over 2,000% between 2019 and 2023. Furthermore, nearly 50% of royalties generated by Indian artists on the platform in 2024 originated from listeners outside of India, indicating a strong global appeal.
Acharia believes that with South Asia’s rapidly growing population and its extensive diaspora, the region is set to become one of the fastest-growing segments within the global music industry. “We’re in a different time, and I think digitally things travel just so much faster,” she stated. She also pointed out that elements of Indian music have long been present in popular culture, with many hit songs incorporating samples from Indian music, suggesting it has been a part of the zeitgeist for a considerable period, though it has lacked a prominent face.
As more record labels turn their attention to the subcontinent, Acharia observes that the business is currently in an experimental phase. The industry is actively working to understand what strategies are most effective and how fan bases will continue to evolve. Warner Music Group, a major player in the music industry, held approximately 17% of the market share by distribution ownership as of the first quarter of 2026, according to Billboard. Acharia articulated the core business proposition: “I think the business proposition is this global Indian fandom. How do we galvanize this audience and this fandom, and how do we serve it?”
Emerging Talent and Industry Shifts
5 Junction is actively representing artists such as singer-songwriter Rhea Raj. Raj shared with CNBC that she is witnessing South Asian music gain greater mainstream traction in the U.S. “We’re seeing more artists at bigger festivals and at award shows, and I think the best of it’s yet to come,” Raj said. She, along with her sister Lara Raj of the girl group Katseye, are among the many South Asian artists in the U.S. who are cultivating fan bases that transcend various backgrounds and ethnicities.
Rhea Raj, who began her career on “American Idol” nearly a decade ago, expressed confidence that South Asian music is on the cusp of a major breakthrough in the U.S., especially with 5 Junction’s efforts to bring more artists to prominent stages. She highlighted the immense diversity within South Asian music, encompassing numerous countries, regions, styles, and subgenres that are ripe for exploration. Raj hopes that as more artists gain mainstream visibility, audiences will be exposed to a wider array of these musical expressions.
The streaming era has significantly aided Warner Records in refining its focus on the South Asian music business by reducing barriers to entry, according to Karen Kwak, the company’s executive vice president and head of artists and repertoire. Kwak reflected on her early career, noting the stark contrast between the music industry then and now, where diversity among executives and artists is far more prevalent. She emphasized that younger generations, particularly in South Asia, are instrumental in shaping current music trends. “That is what is so great about the music world we live in today, is that everybody is embracing who they are, and I think youth all over the world, they want to see stars that look like them,” Kwak stated. “It’s a rabid fandom in India… and it’s exactly where we want to be.”
Warner Records is also committed to fostering collaborations between South Asian musicians and established American artists to facilitate their entry into the music scene. “It’s really about building worlds, and yes, of course, we’re going to continue investing [in South Asian talent],” Kwak added. “It is what music is. We’re changing and impacting and creating the new music culture.” The company prioritizes being “genre-bending and genre-blending,” investing in South Asian talent across a spectrum of musical genres, languages, and audience demographics.
Nora Fatehi, a Moroccan Canadian singer and actress with over 45 million Instagram followers, exemplifies the potential of the South Asian market. Despite not having direct ties to South Asia, she successfully targeted the audience and became a prominent figure in the industry. Fatehi told CNBC, “Right now, what 5 Junction and Warner are trying to do is tap into the different talent that’s coming out of that country, give it a platform, and also allow people around the world to consume the music and to consume the artistry like never before.”
Fatehi, who is scheduled to perform at the World Cup opening ceremony in Toronto soon, observes that while the American market can be challenging for outsiders, the impact of South Asian talent crossing over to the West is becoming increasingly evident. “I think the audience is ready for different stuff,” Fatehi commented. “Now, with YouTube and Spotify and with social media, I don’t think borders exist any longer. … I think labels and managements and platforms realize that people are ready to consume different types of music.”
