Tag: streaming

The Indian Music Industry – Trends in 2023…

On By ChaitanyaIn UncategorizedLeave a comment

2023 was a great year for the Indian Music industry. The rejuvenation of the industry, which started during the lockdown finally hit critical mass with Independent Music (Indie Music*) finally taking its rightful place among other forms of music and solid stabilisation of music streaming as a delivery / business model.

Here’s an overview of major trends that characterised the Indian music industry in 2023:

1. Independent Music on the Rise:
Independent artists and labels gained prominence, leveraging digital platforms to release and promote their music independently. Streaming services provided a level playing field, allowing independent musicians to reach a global audience without the need for extensive industry connections. ‘Radar India’ facilitated over 2 million new user-artist discoveries on Spotify in 2023.

2. Streaming Dominance:
Streaming platforms continued to reshape the music industry landscape, with platforms like Spotify, Gaana, and JioSaavn leading the way. The convenience of on-demand streaming and personalised playlists contributed to the decline of physical sales and a shift away from traditional radio consumption.

3. Collaborations and Cross-Genre Fusion:
Collaborations between artists from different genres became a notable trend, creating diverse and innovative music. Fusion of traditional Indian music with global genres like pop, hip-hop, and electronic music gained popularity, appealing to a broad audience with varied musical tastes.

4. Virtual Concerts and Livestreaming:
The trend of virtual concerts and livestreaming events continued to thrive, offering a solution for artists to connect with their audience during times of restricted live performances. Platforms like YouTube, Instagram, and dedicated concert streaming services facilitated virtual performances and interactive fan engagement.

5. Blockchain Integration:
The adoption of blockchain technology and the adoption by it by the Music industry gained traction. Artists explored new revenue streams and ways to engage with fans through the creation and sale of unique, blockchain-secured digital assets tied to their music.

6. Focus on Regional and Folk Music:
There was a renewed appreciation for regional and folk music, with artists exploring traditional sounds and infusing them into contemporary compositions. This trend contributed to a richer musical tapestry, celebrating the cultural diversity of India’s musical heritage. ‘Hot Hits Bhojpuri’ was in the Top 100 playlists globally on Spotify, and has a 70% GenZ skew. Hip hop is finding regional roots – Rap 91, Dillihood, Mumbai Bantai, Hip-te-Hop, Hip-Hop Haryana etc.

7. AI and Music Creation:
Artificial Intelligence (AI) played a role in music creation, with AI-generated music gaining attention. From composition assistance to personalised music recommendations, AI technologies contributed to various aspects of the music creation and consumption process.

8. Music Licensing for Films and OTT Content:
The demand for music licensing in films, web series, and other OTT (Over-The-Top) content continued to grow. The integration of carefully curated soundtracks became an essential part of storytelling in visual media, creating opportunities for both established and emerging musicians.

9. Personalised Music Experiences:
The focus on personalised music experiences intensified, with streaming platforms leveraging algorithms to curate personalised playlists and recommendations based on user preferences. This trend enhanced user engagement and encouraged exploration of new artists and genres.

2023 was a transformative year for the Indian music industry, marked by the continued rise of streaming, the empowerment of independent artists, and the exploration of diverse musical influences. Technological advancements and a renewed focus on sustainability and cultural authenticity shaped the industry, providing a dynamic and inclusive musical landscape for both artists and listeners.

2024 will continue down similar lines with an increased usage of AI in music. Further, the ‘premium’ offerings in music will shift to the larger-than-life audio-visual-narrative-spectacle live performances a-la Taylor Swift & her Eras tour. We have already seen an example of the same in the ‘Civilisation To Nation’ show produced & presented by the Nita Mukesh Ambani Cultural Centre in Mumbai.

While not as physically expansive as some of the other global live performances, the quality of the music, lighting, presentation and performances was on part with the best in the world and it did a lot to reenergise the live-musical performance genre in India, following up Mughal-e-Azam and other such attempts. The availability of high quality performance spaces like the NMACC in Mumbai & various other cities in India will also aid & abet the emergence of similar premium offerings by Indian performers.

Let’s hope they come sooner, rather than later…

2023 – the year of diverging business models in the Global Music Industry

On By ChaitanyaIn UncategorizedLeave a comment

So, something interesting happened in 2023 in the global music industry:

  • Justin Bieber agreed to a $200-million deal that would transfer ownership of his music to Hipgnosis Song Management, a Blackstone-backed investment company. He sold to Hipgnosis his share of the master recordings, publishing copyrights and neighbouring rights for his complete back catalogue. The deal includes over 290 titles released by the end of 2021.
  • Justin Timberlake and Shakira also recently sold majority stakes in their IP library, to Hipgnosis.
Screenshot

Further, in 2022, the following IP-rights sales happened:

  • Sony Music Entertainment bought Bruce Springsteen’s entire catalogue for an incredible $550 million.
  • Universal Music purchased Bob Dylan’s entire songwriting catalogue of more than 600 songs in a deal estimated at more than $300 million.
  • Singer and songwriter Stevie Nicks sold her music catalogue to Primary Wave Music for $100 million.
  • Tina Turner sold her music rights to BMG for $100 million.
  • OneRepublic’s Ryan Tedder sold his music catalogue to investment company KKR for $200 million.
  • Sting, Paul Simon, Motley Crue, The Red Hot Chili Peppers the estates of David Bowie and Leonard Cohen have also sold their entire IP libraries.

While most of these artists are legacy artists and not really putting out significant new content so I can understand them wanting to cash out their IP while the demand is high, someone like Bieber is still very active and will definitely have many more songs & albums coming out in the future. So do Timberlake & Shakira.

So why are all these bulk sales happening?

In my opinion, it is because of 3 things:

  • the streaming market has really picked up globally with Spotify, Amazon Music, YouTube Music, Apple Music and hundreds of country-specific platforms which are able to put up serious cash as well as generate decent revshare through SAOD and AAOD models. Music is being treated as a product as, with the advent of subscription-based-streaming models, it’s easier to make financial projections on a catalog based on the probability of streaming revenues.
  • The movie Bohemian Rhapsody revitalised interest in Queen for a whole new generation. I’m sure the same happened with Whitney Houston’s music after ‘I Wanna Dance with somebody’ (though not as much in India). The same is also potentially possible for many such legacy artists whose lives are ripe for biographies. This will ensure continuing royalties even after the generations of the original-fans of their music have passed on.
  • the spectrum (and hence monetisation) of where music is being used has widened significantly – with Fitness Apps, Gaming, Instagram, TikTok and hundreds of such platforms across the world where creators are able to lay music under the video or image content they create / post. And these are only going to grow.

Because of all these, serious funds are getting interested in owning these IPs as they see long tail monetisation for them.

Every artist is not going the same way though.

Taylor Swift is actually going the other way. She has dropped her regular label from her next 6 albums and will be recording, publishing, marketing & monetising them herself.

With her SUPER-SUCCESSFUL Eras Tour and then the movie thereafter, she probably wants to build a label around herself and then eventually acquire / syndicate content from other artists and generate enough critical mass to become a label herself and move further up the business pipeline of the music industry.

It has been done in the past by other artists and it would be interesting to see how Taylor Swift does. If she is able to pull it off (and there are no indications to the contrary as of now), it will be a case study worth documenting in the Music business world.

It would also be interesting to see how annual royalties for catalogues go up over the next decade and how this evolving situation changes the music industry. I have a feeling, it will enable the industry to grow significantly, which is much needed as it recovers from decades of piracy-affected losses.