I am learning about this buisness and wish to understand the following.
Music in India is heavily dependent on the film industry (~70% of recorded music is film-based), unlike in other countries where independent artists and their albums contribute majorly to the growth of the industry. In the Indian music industry, there are 10–12 players, with the top four being national players like T-Series, Saregama, Tips Industries, Zee/Sony Music.
Usually, film producers in India usually hire music composers for their films. They use all these songs in their movies and sell the Intellectual Property (IP) rights to record label companies. This is a win-win deal for both parties as film producers sell the song’s IP rights to label companies, who in return publishes and distributes these pieces. All significant rights regarding the songs are with label companies.
Label companies issue licences for the songs to streaming platforms like Spotify, JioSaavn, and Gaana etc. Each time a visitor on these streaming platforms listens to any song or consumes any user generated content, these platforms pay a licence fee to the label company.
I want to understand if there is a possibility that the flim producers directly sell the IP rights to streaming platforms bypassing the record label companies? If no, why? Is it due to the Expertise and resources of record label companies. Record label companies have specialized teams and resources dedicated to music distribution, marketing, promotion, and licensing. They possess the infrastructure and industry connections necessary to effectively monetize and distribute the music across various platforms. Film producers, on the other hand, may lack the expertise and resources to handle these tasks on their own.
Is this understanding correct?
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