New Delhi: Sony Music plans to invest heavily in acquiring songs and music publishing rights to expand the Indian business and revenue of its recently formed joint venture with the United States (US) based Sony/ATV Music Publishing.
After signing the strategic joint venture (JV) for setting up the India operations of Sony/ATV, Sony Music is now looking at investing in publishing rights acquisitions to grow the business in India and drive its revenues, a top official said.
Sony/ATV Music Publishing, co-owned by Sony and trusts formed by late Michael Jackson, is among the world’s largest holder of music publishing companies and owns or administers copyrights by famous artistes from the likes of Beatles and Bob Dylan to Shakira and Lady Gaga.
According to the just completed structure of the JV, the business revenues in India will report into the Sony Music India business and the earnings from international repertoire will be reported back to Sony ATV UK.
The overseas earnings from Sony Music India’s repertoire will however be reported into Sony Music India.
As part of business transaction contracts Sony Music is negotiating for the Sony/ATV business, the publisher may get 8% of retail price on digital sales.
“However, the rates and revenue shares will be same for Indian and international works when used overseas,” said Shridhar Subramaniam, president, Sony India & Middle East.
Subramaniam said that Sony Music India will start collecting mechanical royalties on physical and digital sales, performance income from live and broadcast and also develop synchronization Income when songs are synched to movies, TV shows or commercials. Similarly Sony ATV will do the same with Sony Music India’s assets in the global markets.
Sony/ATV’s senior vice president, international, Guy Henderson said there were significant revenue opportunities for Indian songs worldwide. He said that Sony/ATV would offer Indian artistes a great platform with its global administration and sales network.
The New York-based music publishing firm Sony/ATV last week announced an exclusive JV with Sony Music Entertainment for foraying into the Indian market.
Sony Music India is one of India’s largest music companies with significant interests in Hindi and Tamil soundtracks as also in pop and international music. Sony/ATV is now focusing on Asian and Latin regions.
It is estimated that music publishing in India will become a Rs 500 crore market in 3-4 years time. The recorded music market in the subcontinent in comparison will be about Rs 1,300 crore in size.