IMI updates and news

As per IFPI, in 2017, record labels invested US$4.1 billion in A&R (Artists & Repertoire)  and US$1.7 billion in marketing for artists and their music for a combined total of US$5.8 billion. This equates to approximately 33.8% of global recorded music revenues invested annually into breaking, developing and supporting artists around the world.

In the current music landscape, the role assumed by record labels is multi-dimensional in nature as investors, partners and collaborators with artists. The ways in which record labels can support artists is manifold- from providing adequate resources, investment and establishing connections with people from the music industry to facilitating global coordination, industry relationships and general support. The investment by labels is reflective of the continued commitment of record labels towards artists and their music.

The complete report can be found here.

A recent report published by the Maharashtra Cyber Digital Crimes Unit (“MCDCU”), highlights the threat of hackers that are targeting popular content streaming hardware (for example, the “Kodi box”) to distribute malware and cryptomining software.

As piracy shifts from websites and downloads to devices and apps, hackers are adapting and finding new ways to exploit consumers. They are tapping into a growing consumer trend, the use of illicit devices and apps to access pirated movies, TV shows and live programming, to spread malware, cryptomining campaigns and exploit unsuspecting users.

Content streaming devices that enable free streaming of copyright-protected content, often come packed with malicious malware. Such devices give hackers easy access to router settings, can plant malware on shared network devices and are often leveraged to steal user credentials.

Such devices, offer hackers a new avenue to exploit consumers and a path to reach other devices on a home network, representing the often unseen link between piracy and consumer security, highlighting the consequences of pirated content consumption beyond the revenues lost by copyright holders.

For more information and technical analysis, read the full report here.

The Hon’ble Bombay High Court’s decision of April 23, 2019 in Tips Industries LTD v Wynk Music LTD (Airtel) which held that INTERNET music streaming and digital downloads are not covered under the Statutory licensing provision of the Copyright Act, 1957 is in important decision for the entire recorded music industry in India. This decision ensures fair licensing of digital services in India also in the future and as such will benefit the Industry as well as users of music. IMI the trade body that represents the interest of the recorded music industry in India has welcomed the verdict of the Bombay High Court in the Tips vs Wynk matter.

Tips Industries Ltd a member  of IMI has sued Wynk Music which is Airtel’s INTERNET music streaming service. Wynk claimed the benefit of the statutory licensing provision. The Court disagreed with the argument that streaming was covered under the ambit of statutory licensing provisions.  In reaching this conclusion the court examined the intention of the Parliament and the provision.

Blaise Fernandes, President of IMI said, “This decision confirms IMI’s consistent stand that INTERNET streaming services are not covered under Section 31D of the Copyright Act,1957. As an Industry we noted the intention of our Parliament to provide involuntary licensing benefits under the Copyright Act, 1957 and are very encouraged that the Hon’ble Court has now clarified the intention of our lawmakers did not include streaming services under the statutory licensing scheme.“

Kumar Taurani (Tips MD.) after reading the order said, “This is true justice & I humbly bow in respect to the Indian judiciary. It’s been a long and trying process but we prevailed and justice was served. I’m very happy that the Indian judiciary believed in not only Tips but the whole music industry and vindicated what was right. We are not in a business to arm twist or provoke unnecessary actions onto our partners in the OTT business; but in our case in particular; Wynk was very unfair. Wynk as an INTERNET music streaming service has valuations in millions, despite that they still refuse to pay to music labels few crores, for the labels’ MUSIC content, which is the heart of Wynk’s OTT streaming service, and without a heart ,what good is a body. OTT players until this judgement continued to corner us.”

As per the IFPI GMR Report INTERNET streaming in India contributes to 70% of the revenues of the recorded music industry. The decision of the court is expected to boost the online INTERNET music licensing business in India further.

The global recorded music market grew by 9.7% in 2018, the fourth consecutive year of growth, according to IFPI, the organization that represents the recorded music industry worldwide. Figures released today in IFPI’s Global Music Report 2019 show total revenues for 2018 were US$19.1 billion driven by an uptake in paid subscription streaming (+ 32.9%, Y-o-Y). The Asia and Australasia region (+11.7%) grew to become the second-largest region for combined physical and digital revenue, with especially strong growth in South Korea (+17.9%) and India (+24.5%).

As a fast growing music economy with an average of +21.3% growth over the past three years, India’s recorded music industry revenues increased to $156 Mn in CY18 (INR 1068 Cr.), well positioning India to break into the top 10 music markets by 2022 (India is now ranked 15^th in the world, per IFPI metrics). Mirroring the global growth in streaming revenues. India has seen increasing traffic towards legitimate sources of music (audio OTT platforms, video streaming platforms, etc.) driven by an increase in smartphone penetration and low data rates. The penetration of music services to tier II and tier III cities, along with an increasing subscriber base of internet users suggests that the scope for growth for audio streaming consumption (and therefore, revenues) remains large – as emphasized by the increasing competition in the audio OTT industry.

The recorded music industry in India has played a key role in ensuring that the burgeoning demand for music is met, through large investments in talent, content creation, marketing and promotion and active licensing policies to online and broadcasting platforms. Further, investments in innovative products such as Carvaan and services such as brand advertising solutions, highlight the continual efforts made by recorded music companies to provide better consumer experience through the popularity of recorded music. These efforts have seen marked growth in the revenues from physical formats (+21.2%) and synchronization revenues (+24.6%).

Speaking at the launch of the report, Mr. Blaise Fernandes, President and CEO, IMI said:

“Talent, Technology and Tenacity have been the key drivers of the recorded music industry in India, through the ever changing technological and legislative landscapes. Content creators and owners in India are connecting with audiences globally, through the ubiquity of the internet and the reach of online platforms. Supported by the investments, resources of the recorded industry and market intelligence of IMI, the recorded music industry in India is on the cusp of crossing boundaries within India and outside – providing much encouragement to content creators, both established and emerging. It is imperative, therefore, that the investment cycles by rights holders are sustained through fair valuation of music and voluntary licensing norms. The music will keep spinning, and audiences will keep engaging, it is now more important than ever to narrow the value gap and address fair value, which is necessary to keep the party going.”

Global Music Report 2019: State of the Industry Report is available to download free here (English language).

Global Music Report 2019: Full Report – with Data and Analysis: Purchase the full data and analysis report here.

New Delhi –  The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, in association with World Intellectual Property Organisation (WIPO) hosted a conference on Global Digital Content Market (GDCM) 2018, from 14^th– 15^th November 2018. The conference featured sessions on music, film, broadcasting and publishing, as well as collective management, emerging models and the implications for the market and policy makers.

Please see the full press release here.

Photographs across sessions from both days:

IMI Conducts Workshop for the Eastern Chapter: Legal Matters, Global Trends and Music Piracy on the Agenda

Date: May 30^th, 2018

Kolkata: Mr. Devraj Sanyal, MD & CEO, Universal Music Group – India and South Asia, who is also the Sherpa for IMI’s Eastern working group [READ MORE] conducted a workshop in association with the Indian Music Industry (IMI) to update the regional Bengali labels about key music industry challenges and opportunities. This day long workshop had 33 attendees and covered a variety of topics such as Music Industry Legal Matters, Music Industry Digital Trends and Music piracy.

Mr. Sanyal said “in order for the Indian music industry to grow globally, it’s imperative that the regional music industries grow locally and participate in the national discourse on key challenges ahead of us. Such workshops are a step in the right direction for us to spread awareness and call for engagement”.

Mr. Blaise Fernandes, President and CEO, IMI reiterated the impact of music piracy in the country and said “today, music listeners have an abundance of options for free music streaming, hence they are running out of excuses to pirate music. It is our responsibility to leverage this and redirect our users towards legitimate platforms and work towards a subscription model in the months to come.”

Mr. Dibyendu Lahri of Asha Audio said “such workshops are a great opportunity for regional labels like us to get exposed to global music industry trends and participate on key challenges at the national level. I request all Bengali music labels to unite on major agenda items like 31D and fight against music piracy”.

The workshop concluded with closing remarks from Mr. Sanyal and a vote of thanks from Mr. Fernandes.

Participants in the Southern Chapter: Chennai (23/4/2018)

Participants in the Northern Chapter: Chandigarh (26/4/2018)

Indian Music Industry (IMI), International Federation of the Phonographic Industry (IFPI) and Phonographic Performance Limited (PPL) jointly held the first ever Indian Music Industry Conclave in Chennai and Chandigarh.

Key speakers at the two events included; President and CEO, IMI, Mr. Blaise Fernandes, Regional Director, IFPI, Mr. Ang Kwee Tiang and President & CEO, PPL, Mr. Rajat Kakar. This was Mr. Ang’s third trip to India in the last 9 months, showing a deepening of commitment from the international body to the fast-growing Indian market.

The conclave began by lighting the inaugural lamp and felicitating leading luminaries such as Mr. Manohar Naidu of Lahari Music (Bengaluru), Mr. Aditya Gupta of Aditya Music (Hyderabad), Mr. Mandar Thakur of Times Music India and Mr. Naveen Bhandari of Muzik 247 (Chennai) in the Southern Chapter and Mr. Satinder Singh of Speed Records (Jalandhar) in the Northern Chapter.

In his opening remarks to the various regional music labels present, Mr. Fernandes said “the objective of the conclave is to strengthen specific regional chapters of the music industry with updates from international and national trends and to allow an open forum for discussions on regional market specific challenges.”

Mr. Fernandes presented a “Work in Progress Agenda” of the Indian Music Industry for the next three years, encouraged the stakeholders to become more engaged in helping to create the agenda hence its title “Work in Progress” and join IMI’s lobbying efforts on key issues like Anti-piracy, Value Gap and 31D. Steps that need to be taken to build a robust subscription based eco-system.

Mr. Kakar, representing PPL said in his speech “We have aggressive plans to increase revenues with a strategy to engage with clients and simplify tariffs alongside professionalism and transparency.  The revamped PPL will have a roadmap for the upcoming years with a goal to increase annual Public Performance royalties collection by 38% in 2019. We plan to implement new technology such as Online Licensing and Audio Fingerprinting to improve licensing efficacy and also work on enhancing the logging and disbursement methodology”.

Mr. KT Ang addressed the attendees with optimism towards the future of the Indian music industry despite some major hurdles such as value gap, digital piracy and a lack of paid subscriber base in India. Mr. Ang said “despite double-digit growth for two consecutive years, aided by the incredible success of the music streaming in India, the Indian music industry is yet to achieve its true growth potential or match the trends of the early 2000s. The inability to remunerate the rights owners fairly and the menace of digital piracy continue to hinder progress.” Mr. Ang also presented some key insights from last year’s IFPI Global Music Report 2017 on the Global market and discussed the various challenges in fighting online piracy in India.

The conclave concluded with cocktails and dinner.