Move over CDs and audio cassettes, which are almost defunct now — digital downloading now forms 50 per cent of the Indian music industry revenues. According to Mr Shridhar Subramaniam, President, Sony India and Middle East, ‘physical' forms such as CDs contribute 15 per cent of sales, the performance and broadcasting industry 15 per cent while the overseas markets account for 20 per cent.
The digital consumption, distribution and availability of the catalogue in the digital arena are only a logical progression and evolution of the music market, he says.
Influenced by this trend, Sony Music recently tied up with IODA (Independent Online Distribution Alliance) that offers Indian artistes and labels a quick, transparent and easy way to access the vast global demand for their music. “This would enable Indian artistes and labels to connect with over 3,000 blogs, podcasts Internet radio stations, social networking and music Web sites,” says Mr Subramaniam.
Indian music has a huge global audience. It basically appeals to two segments – Indian diaspora and global experimental audience. First- to third-generation Indians are largely concentrated in the US, the UK, West Asia and Australia and number around 12 million. This segment prefers soundtracks in Hindi or Tamil or Telugu. Additionally, there is a large demand for Punjabi and devotional content too.
Secondly, the world music or the experimental audience – who are either Indophiles, global travellers or the new youth who are seeking new experiences, who have a fancy for Bollywood movies, Indian marriages, costumes and other popular Indian culture. “Indian music is growing in appeal and we are seeing increasing pick-up from global digital stores such iTunes and Amazon,” he said.
Besides, Sony Music recently got into the talent management and music publishing verticals. “With a team of professionals with wide experience” talent management will be the company's second vertical in focus, says Mr Subramaniam.
Sony has access to a database of 2,000 event companies in India and across the world, and would pursue brand fits for endorsement and advertisement deals. “Our relationship in the film industry, close associations with music directors and production houses would help us facilitate mutually beneficial engagements,” he added.
On music publishing, he said the company has tied up with a global music publishing house — Sony ATV Music Publishing (jointly owned by the Michael Jackson family trust and Sony).
There is scope in India for this vertical as there are not many labels that manage assets, administer them while also monetising them in India and in the overseas markets too, he said.