Music industry hits a high note with Rs 12k-crore revenue
The Indian music industry generated ₹12,000 crore in revenue last year involving more than 40,000 music creators, says an EY report titled ‘The music creator economy: The Rise of Music Publishing in India’. However, India’s global revenue ranking still trails other developed markets, the report stated.
At ₹12,000 crore, the report noted that the music industry contributes around 6% of the media and entertainment industry revenue. It added that music is integral to streaming, films, television, radio, gaming, and social media.
Music revenue from streaming and broadcast stood at ₹5,692 crore and ₹4,350 crore, respectively. Filmed entertainment and concerts & events contributed ₹1,200 crore and ₹805 crore, respectively, to the overall music revenues.
The report added that the recorded music revenues of labels crossed ₹2,500 crore in 2022 and are projected to touch ₹3,600 crore in 2024. It noted that the music publishing revenue will touch ₹845 crore in 2022-23 and is expected to touch ₹1,690 crore by 2026-27.
Ashish Pherwani, Partner, Media & Entertainment, EY India, said the music segment’s sound recording revenues have been driven by both local and international labels for a long time.
He added that music publishing revenues remain much smaller, given the differing views on its applicability, litigation, and low awareness.Of the ₹845 crore revenue earned in 2022-23, almost ₹525 crore of the music publishing revenue came from the Indian Performing Rights Society (IPRS), which pays royalties to music creators by collecting licence fees on their behalf from music users. About ₹320 crore of music publishing revenue was earned by the music publishers directly.
“The IPRS has over 13,500 authors as its members and continues to grow its revenues as more music users comply with publishing requirements,” Pherwani noted.
According to the report, Indian songs are among the most popular in the world, holding seven spots on the Top Ten YouTube Global Charts for 2022.
The Indian music market is highly inclined towards film music, with 70% of music consumption and 75-80% of recorded music revenue being driven by film music.
While India’s music business is governed primarily by the Copyright Act, divergent court decisions have resulted in differing viewpoints on its applicability and/or its quantum, the report stated.
This divergence in implementation, it added, has resulted in low compliance with the Copyright Act.
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