IMI Reports

On 3rd September, 2019, the Indian Music Industry (“IMI”) hosted the 2nd edition of Dialogue: The Indian Music Convention 2019 in New Delhi. The national conclave saw participation from key stakeholders in the music ecosystem including representatives from the recorded music companies, copyright societies, industry partners (DSPs), as well as representatives from IFPI, think tanks and diplomatic missions. The DPIIT and Copyright Office continued to show their support for the increased engagement between these stakeholders, through their participation at the event.

At Dialogue, IMI along with Deloitte today jointly launched “Economic impact of the recorded music industry in India”. Ms Sumita Dawra, Joint Secretary, DPIIT, unveiled the report along with Mr Vikram Mehra, Chairman, IMI.

“Vision 2022: Roadmap for India to reach the top ten music markets in the globe” per IFPI metrics was the mission statement of Dialogue 2018 and I am pleased to say that we are on course to achieve our objective. India jumped to 15th place in the IFPI global rankings in 2019 from 19th in 2018. For the 3rd year in a row IMI members have recorded an average of 20% growth rate for the past three years. Today we are at US$ 156.1 mn and are currently around US$ 143 mn away from reaching the 10th spot. Some of the low hanging fruits are:

Sync Revenues:
With digital advertising growing at 33.35 % and the total pie at approximately US$ 2.64 bn or INR 169 bn in India, the increase in advertising spend is an opportunity for our members and IMI is working at various levels and forums to evangelize the effective and economic use of sync licenses with the advertising fraternity (brands, associations etc.) and the advertisers.

Driving traffic to legitimate sites is another key focus area:
As per the IFPI – IMI Digital Music Study 2019, research indicates 67% consumers still visit pirated websites for their music needs. We commend the efforts of CIPAM, MCDCU and IMI continues to support these efforts. IMI has welcomed the Dynamic Site Blocking ruling of the Delhi High Court. Piracy is like cancer needing both chemotherapy and palliative care. The focus has been on chemotherapy and the industry will maintain those levels but will also increase our efforts on palliative care and work together with the all the stakeholders, the DSP’s, telcos and the creative industries in driving traffic to legitimate sites.

Lastly, Brazil earned US$ 77.4 mn in Public Performance revenues when compared to US$ 14.7 mn earned by India, we are hopeful that PPL will be granted society status soon and that will help us grow this revenue stream.

The recorded music industry in India embodies and has many touch points with our Hon’ble Prime Minister Shri Narendra Modi’s vision to name a few, #STARTUPINDIA #DIGITALINDIA #MSMEINDIA #INVESTINDIA.

We live in interesting and challenging times.

A joint report of both of the events can be downloaded here

New Delhi, Sep 3, 2019: Indian Music Industry (“IMI”), the apex trade body representing the recorded music companies on a pan-India basis, along with Deloitte today jointly launched  “Economic impact of the recorded music industry in India” report at Dialogue: The Indian Music Convention 2019. Ms Sumita Dawra, Joint Secretary, DPIIT, unveiled the report along with Mr Vikram Mehra, Chairman, IMI and Managing Director, Saregama India and Mr Blaise Fernandes, President and CEO, IMI.

Also present at the launch were – Lauri Rechardt, Chief Legal Officer, International Federation for Phonographic Industry (“IFPI”); KT Ang, SVP, Public Policy – Asia, Universal Music Group and Edwin Yee, SVP and Regional Counsel, Sony Music Group and Jehil Thakkar, Partner, Deloitte India.

The report estimates recorded music industry in India to be INR 1,068 crore (about 0.006% of India’s GDP), employing 1,460 full-time employees. It pegs the ripple economy effect to be more than 8.1 times the size of the recorded music its size, with estimated revenue of INR 8,660 cr, generating full-time-equivalent (FTE) employment of 38,600 (25.2 times the employment generated by the recorded music industry). These estimates do not include the multitude of informal users/usage of music which touch large sections of society – such as brass bands, small restaurants, parlours, and gymnasiums. Lastly, the report highlights the non-quantifiable but powerful effects of music, including its ability to cut across cultures and its ability to heal.

“Every 10% growth in the music industry is expected to generate INR 810 cr of additional revenue in the economy from formal partner industries and can ensure employment in the region of 3,600-3,700 FTE in formal partner industries. While at present, the recorded music industry is growing in pace with changing technological trends and is earning significant revenue from streaming services, among other channels in the ecosystem. It is important to establish a fair value to all stakeholders in the value chain. We can expect additional investments in this sector if the fair value and value gap issue get fixed” said, Mr Vikram Mehra, Chairman, IMI. The IMI-Deloitte report states the need to unlock fair value for the music industry by systemic policy changes and cohesive approach towards eradicating piracy. Lack of fair value is seen as the biggest hurdle, creating bottlenecks for investments, addressing which will pave the way for India to become one of the top 10 music markets in the world.

Mr. Vikram Mehra, Chairman, IMI said, “The recorded music industry is uniquely placed in India to enter the top 10 music markets.However, we still have a lot of work to do, and we need govt.’s help in the same. If Fair Value is accorded to the Copyright Owners of recorded music it will unleash tangible and intangible benefits, both economic and social. Just imagine the lives the music industry can and will touch, the employment that it can and will generate and the contribution to the economy and GDP that it does but is so sparingly measured.”

Expressing his views on the issue Mr Blaise Fernandes, President, and CEO, IMI said, ” India will always be a culturally rich nation with a long history of diverse and engaging music, it is languishing at number 15 in the world in terms of the recorded music industry size per IFPI metrics. It is hardly at par with the country’s global and economic or cultural position. Clearly representing a value gap in the entire music value chain – if the value gap problem is addressed this will usher in a new era for the music industry in India. The creative talent and the recorded music industry are partners with the high-value platforms, but this report indicates that the partnership needs recalibration in favour of the recorded music industry and the creative community.”

Mr. Jehil Thakkar, Partner, Deloitte India, said, “Music is a universal language, and is a powerful tool to expand India’s influence and spread awareness of many things Indian − be it yoga, tourism, or made-in-India products. India’s diversity in culture and language has made the country’s musical output rich and varied. It is important for all stakeholders to cherish, preserve, and invest in India’s creative communities as the country looks to take its rightful place in the world.”

The report can be accessed here.