From ICA Institute blogger, Erik Rostad:
One market that we all need to keep a close eye on for music & entertainment is India. Their music industry is booming. And the market looks much different than the US market. For starters, upwards of 60% of music sales are of songs found in films. The tie between movies and music is extremely powerful & lucrative in India.
We are now starting to see Indian companies sign 360 deals with India & U.K. based artists. These deals place the company in the revenue stream of albums, concerts, t-shirts, etc. and offer a nice diversification away from reliance of the declining album. One company, Big Music & Home Entertainment, has just initiated a division for artist management, cleverly title ‘Big Talent’. This group will specialize in the 360 deals with artists and will collaborate with the group ‘Big Stage’ who will be working on the live shows.
Big Music & Entertainment was started last year and is owned by Reliance, the large India conglomerate changing the face of India. You have most likely read about Reliance ADAG recently, as they are also trying to make a foray into the US film industry through a $550 million investment into DreamWorks. In Reliance’s own words:
“Big Music and Home Entertainment plans to focus on digital platforms such as the Internet and mobile and radio networks, in addition to traditional physical formats. It will also make its foray into events and live entertainment through talent management and conducting live events. An example is its tie-up with Star Voice of India to manage the winner and other finalists with shows and albums.”
Another interesting note about Big Music & Entertainment is that they are the licensee for Universal Home Video’s. So not only is Universal investing heavily in new internet social networking start-ups, they are also establishing strategic partnerships in key international markets. I suspect we will begin to see more international deals in the near future as USA record labels will seek additional revenue streams outside of the saturated home market.
Another side note, Columbia Records (under EMI) is also operating in India and is busy signing 360 deals.
I think we will soon see Big Music & Entertainment signing deals with USA acts. It is not too far fetched to see Big Music being able to offer more lucrative deals to USA bands for tours, album sales, film placement, etc. As the Indian economy continues to expand, the DreamWorks investment will end up being one of the first big investments that Indian companies make in the USA entertainment industry.
Stay tuned,
Erik
Music Industry Blog: http://www.kokopellitimes.com/
erikrostad.com
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