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They are playing our songs....: Indian Express
New Delhi, July 22: Business is in the red. In the last three years, the Indian Music Industry (IMI), the apex body comprising 50 music companies, has reported a loss of Rs 18 billion.
New Delhi, July 22: Business is in the red. In the last three years, the Indian Music Industry (IMI), the apex body comprising 50 music companies, has reported a loss of Rs 18 billion.
While piracy has been steadily eating into profits (the music industry’s loss from piracy is estimated at Rs 7 billion annually is equivalent to the earnings from legitimate business, and that of the film industry is an astronomical Rs 20 billion), cover versions and the proliferation of FM channels have also contributed to the steady decline in music sales.
Out of the Rs 6-7 billion lost every year, approximately Rs 1.5 billion is due to cover versions. Using a legal loophole, old hits are re-recorded with new singers after a gap of two years for a minimal royalty of 5 per cent. It’s not necessary to take the consent of the original performer, though his/her photograph may be used on the cassette/CD cover along with identical labels to dupe unsuspecting buyers.
IMI insists that FM radio channels have added to the loss. Going by statistics, there are an estimated 150 million radio sets across the country. The Rs 1.6 billion industry is reported to be growing by 31 per cent every year and should touch the Rs 6.2 billion by 2007, with revenue rising at 23 per cent annually. Also, though radio has only a 2 per cent share in the Rs 6,000 crore Indian advertising market, advertising spending is expected to amount to Rs 500 crore this year.
IMI claims that the fallout of radio’s fast-growing growth and popularity is that record sales have dipped by 37 per cent while a decline of 33 per cent has been observed in listening hours. A survey also reports a 38 per cent drop in the purchase rupee value.
Sumantra Dutta, COO, Radio City, Star India, strongly refutes the allegation that radio has adversely affected listening habits or even music sales. On the contrary, he points out, that radio has evolved tremendously. In countries like the US, UK and Australia it is used effectively to showcase, promote and popularise music released by music companies. The same is true for India.
One other reason for decline in sales, points out Dutta, is the inability of the music industry to release hits. He has a point there. Last year, Nadeem-Shravan’s score for Raaz had the cash counters jingling. So did Humraaz, Sur, Saathiya and Devdas. However, even the latter couldn’t match up to the hype and the Rs 11 crore that Universal Music paid for its music rights.
There’s no denying that the once rocking record industry is on the rocks today. And FM broadcaster are offering down-in-the-dumps music producers what, they claim, is a life jacket. Will they grab it and bail out? Or will they shrug it off and take radio down with them like the Titanic? Only time will tell. After all, as both parties point out, the price has to be right. It’s a question of survival!
IMI insists that FM radio channels have added to the loss. Going by statistics, there are an estimated 150 million radio sets across the country. The Rs 1.6 billion industry is reported to be growing by 31 per cent every year and should touch the Rs 6.2 billion by 2007, with revenue rising at 23 per cent annually. Also, though radio has only a 2 per cent share in the Rs 6,000 crore Indian advertising market, advertising spending is expected to amount to Rs 500 crore this year.
IMI claims that the fallout of radio’s fast-growing growth and popularity is that record sales have dipped by 37 per cent while a decline of 33 per cent has been observed in listening hours. A survey also reports a 38 per cent drop in the purchase rupee value.
Sumantra Dutta, COO, Radio City, Star India, strongly refutes the allegation that radio has adversely affected listening habits or even music sales. On the contrary, he points out, that radio has evolved tremendously. In countries like the US, UK and Australia it is used effectively to showcase, promote and popularise music released by music companies. The same is true for India.
One other reason for decline in sales, points out Dutta, is the inability of the music industry to release hits. He has a point there. Last year, Nadeem-Shravan’s score for Raaz had the cash counters jingling. So did Humraaz, Sur, Saathiya and Devdas. However, even the latter couldn’t match up to the hype and the Rs 11 crore that Universal Music paid for its music rights.
There’s no denying that the once rocking record industry is on the rocks today. And FM broadcaster are offering down-in-the-dumps music producers what, they claim, is a life jacket. Will they grab it and bail out? Or will they shrug it off and take radio down with them like the Titanic? Only time will tell. After all, as both parties point out, the price has to be right. It’s a question of survival!