



Beyond the soundtrack — music labels look at full-stack entertainment
Subscribe to enjoy similar stories. Weak streaming monetization is pushing music labels closer to the source of value—film and series creation.
After Saregama invested ₹325 crore in an initial stake in filmmaker Sanjay Leela Bhansali’s company in December and Universal Music acquired a 30% stake in Excel Entertainment earlier this month, it is clear music labels are taking an interest in film companies, pointing to growing trends and challenges in both ecosystems. According to industry experts, music streaming continues to deliver weak monetization, with per-stream payouts amounting to only a few paise, making it difficult for labels to generate meaningful long-term value even from large catalogues.
At the same time, fragmented rights enforcement limits how effectively music intellectual property (IP) can be monetized beyond traditional distribution channels. In contrast, the film and OTT ecosystem offers deeper, more diversified revenue streams, including content distribution rights, music royalties, performance rights and global syndication.
Meanwhile, studios are grappling with uncertainties in the theatrical and streaming businesses coupled with unreasonable star fee and competition from easily available international content. “The move is being driven by a convergence of pressures, rather than a single trigger.
While the Indian music business continues to grow in scale, it is increasingly exposed to music platform economics, limited pricing power, and a dependence on content created elsewhere," said Anushree Rauta, equity partner (head of media, entertainment and gaming practice) at ANM Global. "The decisions are best understood as a push towards vertical integration, rather than a response to any single downturn."
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