Showing posts with label Vikram Mehra. Show all posts
Showing posts with label Vikram Mehra. Show all posts

Music labels seek new track as streaming hits paywall

Music Streaming Revenues Surge And Investors Like The Beat

Shutdown of free services and shift to subscriptions disrupt ad-driven revenues
Javed Farooqui (THE ECONOMIC TIMES; May 26, 2025)

India's music labels are facing a slowdown in revenue growth as the country's audio streaming ecosystem is undergoing a structural shift, according to industry executives.

With the shutdown of several streaming platforms and others moving behind paywalls, the ad-supported model has come under pressure, creating short-term disruptions across the industry, they said.

"There has been a lot of short-term pain over the past few quarters, with multiple services shutting down-first Resso, then Hungama and Wynk Music, and now Gaana moving behind a paywall," Vikram Mehra, managing director of Saregama, said on an earnings call.

This has led to a halt in revenue from free services, he said, adding, "But in the long run, it's a very healthy sign for the industry's growth."

Saregama reported flat revenue in its music licensing and artist management segment for the March quarter at Rs. 171 crore, unchanged from a year earlier. The company attributed the stagnation in part to the shutdown of Wynk Music in December 2024.

Vikas Somani, head of strategy, M&A and business development at Zee Entertainment, highlighted the impact on Zee's music business. "We have seen growth tapering to single digits, mainly because some of the homegrown streaming platforms have shut down or slowed down. But if you strip them out and look at a like-to-like basis on other platforms, the growth is pretty satisfactory. We expect things to stabilise this year and growth to pick up again," he said.

While Zee Entertainment doesn't disclose music revenue separately, the company earns more than ₹400 crore annually from the segment, according to industry estimates.

Over the past 18 months, three audio streaming services-Wynk Music, Hungama and ByteDance-owned Resso-have shut down. Others, such as Spotify, Gaana and JioSaavn, have pivoted to subscription-based models from largely ad-supported ones.

This transition has disrupted revenue flows for music labels, especially those with licensing deals that included minimum guarantees. The end of such agreements, coupled with reduced exposure on free platforms, has triggered a dip in short-term earnings.

TIPS Music, which posted a 29% year-on-year increase in revenue to Rs. 310 crore for 2024-25, also acknowledged the shift in consumption patterns. CEO Hari Nair said platforms are increasingly encouraging users to move to paid models by introducing more restrictions on free usage.

“If you see the platforms like Spotify, they are putting in more restrictions, and they are pushing the consumers towards a paid model. So overall, it’s a very promising and positive thing for the entire industry,” he told analysts during the fourth quarter earnings call.

Nair also said that subscriptions drive music streaming globally and that India is likely to follow a similar trajectory.

Music artists gaining ground in brand endorsements, challenging film stars and cricketers


Firms seek out A R Rahman, Diljit Dosanjh, Badshah & others to connect with music audiences, say experts
Javed Farooqui (THE ECONOMIC TIMES; March 12, 2025)

Riding high on their growing fan base, aided by digital platforms, music artists are beginning to make their mark in the brand endorsement arena - traditionally dominated by film stars and cricketers.

From live concert appeal to social media dominance, musicians are becoming increasingly sought after by brands aiming to connect with music audiences, particularly young people, experts said.

While actors and cricketers continue to dominate high-value, long-term brand deals, music artists are gradually becoming an integral part of marketing strategies, they said.

According to estimates, top-tier artists such as A R Rahman, Diljit Dosanjh and Badshah are leading this shift, securing deals worth between Rs. 1 crore and Rs. 2 crore per brand association. Emerging talent is also making strides, earning Rs. 50- Rs. 75 lakh per deal, depending on their popularity and musical performance.

Dosanjh, a well-known name in both Bollywood and Punjabi music, was recently signed as the brand ambassador for Levi's. He has also endorsed brands such as Coca-Cola, Fila and Boat. Similarly, rapper and singer Badshah has signed deals with Dyson's OnTrac headphones and automobile marketplace Droom, while Sony India recently brought Karan Aujla on board for its audio products. Music composer AR Rahman has maintained a long-term partnership with Harman and several other brands.

Vikram Mehra, managing director of music company Saregama India - which has also ventured into live events and talent management - said during the company's Q3 earnings call that music artists are beginning to make their presence felt in the advertising world.

"You are finally seeing in this country that music-based artists are also becoming very sought-after brand ambassadors. There was a time that the most coveted brand ambassadors used to come only out of the film industry or cricket. Now you have the likes of Diljit Dosanjh, big music-based artists, who are getting very popular and coveted with the top brands of the country," he added.

Vinit Karnik, managing director for content, entertainment and sports at GroupM, however, believes that music artists still have a long way to go, as brands currently engage them more tactically than actors or cricketers, who are aligned with longer-term strategies.

"Most brands use music artists as influencers or for moment marketing campaigns, with only top-tier artists securing major endorsements. A case in point is Levi's signing Diljit Dosanjh as a brand ambassador," he noted.

Uday Singh Gauri, CEO of Dharma Cornerstone, which manages multiple music artists including Karan Aujla, highlighted the booming live music scene, citing Aujla's sold-out concerts as evidence of growing fan investment in music. This shift has encouraged brands to view musicians as long-term partners rather than just digital influencers.

"Today, brands - those targeting Gen Z - are turning to musicians to convert fandom into sales," he said. "Musicians offer customized brand solutions with multiple touchpoints, making them powerful assets in achieving a brand's marketing objectives."

Suniel Shetty set to make his web debut with noir action thriller titled Invisible Woman

 Anna in action on OTT

Mohar Basu (MID-DAY; October 1, 2021)

With the past year proving that digital entertainment is the way to go forward, many Bollywood actors have dived into the OTT world. The latest to join the bandwagon is Suniel Shetty. Given his penchant for action, it’s only fitting that the actor is making his web debut with a noir action thriller titled Invisible Woman. He will be joined by Esha Gupta in the series that will be helmed by Tamil director Rajesh M Selva.

Excited as he is by the dynamic nature of OTT entertainment, Shetty says he was waiting for a compelling story to foray into it. “Today, a web series must have something to set it apart from the barrage of narratives that already exist. The story of Invisible Woman immediately captured my attention,” says the senior actor, who believes that the thriller’s “unique” plot will grab eyeballs. The series — backed by Yoodlee Films — is expected to go on floors in Mumbai in the next few days.

Vikram Mehra, managing director, Saregama India, says that the project also marks the studio’s foray into the web. “We have been itching to get into the space, given how the consumption patterns of consumers have seen a tectonic shift. Invisible Woman, an edgy action thriller, is just the right one to augur this transition,” he states.