Music industry losing revenue thanks to short video apps | Mint
Active Stocks
Tue Feb 20 2024 15:54:00
  1. Power Grid Corporation Of India share price
  2. 287.95 4.16%
  1. HDFC Bank share price
  2. 1,453.75 2.59%
  1. Tata Steel share price
  2. 141.05 -0.60%
  1. NTPC share price
  2. 345.65 2.01%
  1. ITC share price
  2. 406.05 -0.77%
Business News/ News / India/  Music industry losing revenue thanks to short video apps
BackBack

Music industry losing revenue thanks to short video apps

It is difficult for short platforms to license from the hundreds of labels across India, more than 200 according to industry estimates, and most limit themselves to the top five or seven national and regional language majors

Even as services like Moj, owned by ShareChat, and Chingari have signed deals with music labels such as T-Series, Zee Music, among others, there are those who flout copyright rules. (Photo source: Twitter)Premium
Even as services like Moj, owned by ShareChat, and Chingari have signed deals with music labels such as T-Series, Zee Music, among others, there are those who flout copyright rules. (Photo source: Twitter)

NEW DELHI: The music industry in India is losing about Rs200 crore in revenues annually as short-video apps bypass payments and access libraries of music labels illegally. Services such as Moj, owned by ShareChat, and Chingari have signed deals with music labels such as T-Series and Zee Music. However, there are those who flout copyright rules.

Domestic players earned Rs1,068 crore in revenues, according to the Digital Music Study 2019 brought out by the Indian Music Industry (IMI).

Also Read | What 2020 did to India’s inequality

IMI is the apex body that represents the interest of music companies or record labels on a pan-India basis. India’s homegrown short-video app market has been trying to make the most of the Make in India wave that has gained ground since the ban on Chinese apps such as TikTok last year as they cater to a young, primarily small-town base of users.

“The usual explanation would be that the platform showcases only user-generated content and the user is responsible for whatever they’re putting up," said Blaise Fernandes, president and chief executive officer, IMI. Using music illegally, however, is par for the course in India, Fernandes said. Inaction against most apps can be attributed to a combination of expensive legal aid and the lack of infrastructure to pull down the content, he said.

Bhushan Kumar-owned T-Series had sent copyright infringement notices to content sharing mobile applications such as Roposo, Triller, Taka Tak, Josh, Mitron, and Snack Video for using the label's music without permission last year. However, litigation is not easy, said Fernandes.

Mint had reported about T-Series sending notices last August with president Neeraj Kalyan then saying these apps were "taking advantage of TikTok’s ban in India and to gain immediate success are using popular music, most of which belongs to T- Series, without our permission". T-Series did not respond to Mint's queries.

However, it is difficult for short platforms to license content from the hundreds of labels across India, more than 200 according to industry estimates, and most limit themselves to the top five or seven national and regional language majors, said Shahir Muneer, founder and director of Divo, a south-Indian music label.

“There is no unified mechanism for licensing music content. In mature markets, rates are dependent on the monthly active user base of the short video app, but in India, they can be negotiated on the basis of the market share of the music label," Muneer said.

Moreover, homegrown apps have not attained the popularity that TikTok had, most industry experts feel.

“It was an effective promotional platform for us. You knew your song would gain hits and views once it went on board. That impact hasn’t happened with local apps yet," a senior executive at a music label said, choosing not to be named.

Most platforms had started conversations on legitimate music acquisitions only after sensing the opportunity on expanding user base that came with the TikTok ban.

A senior executive at a short video platform said most music labels do not take apps seriously unless they have a certain amount of funding backing them. Once they see the app has gained some recognition, in this case, the traction that came after the TikTok ban, they start asking for their share.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Lata Jha
Lata Jha covers media and entertainment for Mint. She focuses on the film, television, video and audio streaming businesses. She is a graduate of the Columbia School of Journalism. She can be found at the movies, when not writing about them.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 19 Jan 2021, 12:34 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App