"70% of recorded music in India is film-based"
A study has said that the Indian recorded music industry has the potential to rival the European music market.
A report published by the Indian Music Industry (IMI) said that the Indian recorded music industry is losing a potential revenue of £193 million to £290 million every year.
This is due to policy gaps, archaic rules and regulations.
But the IMI says that with the right policy push, the industry has the potential to rival the European music market in a decade.
European recorded music revenues accounted for £4.3 billion. In addition, live music revenues were more than £6.3 billion while publishing revenues were £4.3 billion for 2019.
On the other hand, the Indian recorded music industry is valued at £145 million.
Blaise Fernandes, President and CEO of IMI, said:
“Since 70% of recorded music in India is film-based, the growth of the film industry should have led to the growth of the recorded music industry.
“However, despite this symbiotic relationship, today the film industry is valued at £1.8 billion, while the music industry is valued at a mere £145 million.
“Archaic laws compounded by unwarranted and unnecessary regulatory interventions, especially in the rapidly developing digital marketplace as well as exemptions from Public Performance Rights, due to policy lacunas point to the wide revenue gap between the recorded music and film industry.”
Mr Fernandes said the potential revenue loss was down to outdated laws eroding the fair value of the copyright, safe harbour provisions under Section 79 of the Information Technology Act, 2000
The report, titled ‘A case for free-market economics in the Indian recorded music industry’, says the growth of the industry can come on the back of 448 million smartphone users and the lowest data pricing in the world.
The report says that the 700 million unique bank accounts, moves towards digital transactions and the government’s Bharat Broadband programme BharatNet will increase progress.
It also mentioned the growth of India’s digital advertising market, which continues to grow.
Mr Fernandes continued: “A digital regulatory system being built around JAM (JanDhan – universal basic income, Aadhar – unique identification program and Mobile) controlled by the state which is promoting an interoperable ecosystem, to prevent a winner takes all situation, will enable a number of digital services to co-exist and the market to bloom.”
There is a diverse range of languages spoken in India, more than 2,000 recognised and 1.9 million local dialects.
This is similar to the cultural diversity of Continental Europe.
It is possible that India can aim to rival the size of Europe’s music market in a decade.