Hit songs, one-time fees: The financial reality for playback singers

Lata Jha
5 min read27 Feb 2026, 06:01 AM IST
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Indians Love Bollywood Music - Then Why Aren't Playback Singers Paid Well?
Summary
Many playback singers in India’s unorganised music industry struggle despite hit songs, facing low pay, opaque contracts and poor revenue transparency, underscoring the need for greater financial literacy and fairer practices.

Even as film songs clock millions of views and dominate streaming charts, many playback singers, especially those outside the top tier, say the financial reality behind the glamour remains precarious.

The recent announcement by singer Arijit Singh to quit playback, along with statements by Amaal Mallik on inadequate compensation, have once again spotlighted concerns around pay structures and sustainability in India’s largely unorganised music industry.

At the heart of the issue is a mismatch: even as streaming grows and film music deals become bigger, the economics of playback singing remain skewed. Most singers are paid a one-time fee, while ownership and much of the long-term digital earnings stay with producers and music labels.

Industry experts say the issue is particularly acute for newer names, even though the debate has been triggered by established voices.

Depending on popularity and stature, established singers can earn upwards of 25 lakh per song. In contrast, new voices may be paid only a few thousand rupees.

According to a Ficci-EY report, the Indian music segment declined 2% to 53 billion in 2024, even as streaming volumes and soundtrack valuations continued to rise.

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One-time fees

A hit song may generate massive numbers on YouTube and audio streaming platforms, but revenues are split across multiple stakeholders. If contracts are not structured well, singers often receive only a one-time fee instead of long-term royalties.

“A hit song may generate massive numbers but the revenue is divided across multiple stakeholders - labels, producers, platforms, publishers. If contracts aren’t structured well, vocalists may receive a one-time fee instead of long-term royalties and sometimes not even that,” singer and songwriter Aastha Gill said.

“A lot depends on awareness and negotiation power. Many artists are creative first and business later and that gap can cost you. The system is evolving but financial literacy and transparency are still areas we need to strengthen for the artist community,” Gill added.

Singer Benny Dayal shared that film songs typically involve a large collaborative ecosystem, with many contributors shaping the final outcome, which can make the overall structure quite layered. He added that independent music feels more straightforward and creatively fulfilling, as it allows artists greater control and the freedom to express themselves without being bound to a film’s narrative or external direction.

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Copyright structure

In most film music scenarios, the outcome is structural rather than a loophole, according to Shahir Muneer, founder and director at Divo, a Chennai-based music and media company.

Under Indian copyright law and long-standing industry practice, the film producer is the first copyright owner of the music, since composers, lyricists and singers are typically engaged on a fee or salary basis for commissioned work. That upfront payment effectively acts as a buyout of long-term exploitation rights.

Once ownership rests with the producer, the music may be sold to a label or exploited directly through distributors, and long-tail monetization flows to the copyright owner—not to individual contributors.

“Vocalists generally do not participate in backend revenues unless specifically negotiated. Singers do, however, receive public performance royalties through bodies such as ISRA (Indian Singers Rights Association, also known as Indian Singers And Musicians' Rights Association), though these form a relatively small portion of overall digital revenues," Muneer added.

"Importantly, vocalists also tend to have a much larger earning potential from live performances and concerts compared to composers or lyricists, often making live events their most significant revenue stream—an advantage that other contributors typically do not have,” he added.

The challenge today, he pointed out, is less about revenue “not reaching” singers and more about a mismatch between public perception of streaming success and the contractual realities of commissioned film music. Transparency, awareness and clearer communication of deal structures are essential to bridge this gap.

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Clout matters

While singers increasingly feature in music videos and receive live event offers, industry experts say such opportunities typically come only after vocalists command clout. For those starting out, it is common to go unpaid for up to three months of recording, or not be paid at all if a producer or composer replaces their voice with that of a bigger name at the last minute.

Meanwhile, music labels such as T-Series, Sony Music and Saregama have seen film soundtrack acquisition costs spike five to eight times since the covid-19 pandemic.

Soundtracks for big-budget Bollywood films are now being acquired for 25-30 crore, comparable to the entire production budget of a mid-budget film.

Filmmakers, believing streaming is generating significant returns for music companies, are demanding sharply higher rates. Most deals are struck early in a film’s lifecycle—often before the music is even composed, making it riskier to back lesser-known voices.

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In an earlier interview with Mint, Kumar Taurani, managing director of Tips Industries Ltd, had said, “When a singer attains popularity, the audience wants to listen to more songs from him or her, and on repeat mode. This strategy is pragmatic and is a practice that has persisted over time."

Singer Clinton Cerejo has also noted that a playback singer’s profile today is shaped not just by song popularity but by social media following and Instagram numbers.

Fewer opportunities

The reduction in playback opportunities is also driven by creative and structural shifts, according to experts. Not all films today are conceived as musicals, and many narratives do not require multiple original songs.

At the same time, India has lakhs of trained and aspiring vocalists, while the number of songs commissioned annually through films runs only into the hundreds or low thousands. The resulting supply-demand imbalance intensifies competition, even for established names, and is visible across Hindi and regional industries.

“Playback singing today is as much about visibility as it is about the voice. The world has become very digital. Sometimes trends drive the choices made more than talent itself. These dynamics exist across languages because every industry has its own ecosystem. The competition is higher, and consistency matters more than ever,” Gill said.

“Labels, streaming platforms, copyright bodies, artist managers and the artists themselves - everyone plays a role. We’re already seeing more conversations around royalties, ownership and fair contracts. Independent distribution has opened doors. Artists today are more aware, more vocal and more business-savvy. The shift won’t happen overnight but it’s happening. The key is collaboration, transparency and artists choosing to understand their own value - creatively and commercially,” she added.

About the Author

Lata writes about the media and entertainment industry for Mint, focusing on everything from traditional film and TV to newer areas like video and audio streaming, including the business and regulatory aspects of both. A journalist for nearly a decade, she spends a lot of time watching content, particularly the old-school way in movie theatres, to make sure her writing is embedded in on-ground experience, given the challenges of covering entertainment news in a country that often just talks about the glamorous side of things. Lata tries to find and report on themes and trends in the entertainment world that most people don't notice, even though a lot of people in India and beyond are really into movies. A graduate of the Columbia School of Journalism, she has also authored a book on the business of entertainment.

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