Report predicts boom in Indian music industry
What's the story
Consultancy firm KPMG and the Federation of Indian Chambers of Commerce and Industry (FICCI) released a report based on information provided by the Indian music business sources predicting a boom in the industry. The report, however, stated that only 1-2% of music in India is bought legally.
Predicted growth
The predicted growth of the Indian music industry
The report released by KPMG and FICCI showed that the Indian music business grew at a rate of 2.3% from 2013-2014. From Rs.740 crore in 2008, the size of the Indian music business had reached Rs.980 crore in 2014. The report further predicted a growth rate of 14%, and stated that by 2019, the industry would be worth Rs.1890 crore.
Data
Differences in valuation
The "Global Music Report 2016" published by the International Federation of the Phonographic Industry (IFPI) valued the Indian music industry at Rs.610 crore in 2014, as opposed to KPMG's Rs.980 crore in 2014.
Effects
How are the artists affected?
The report stated that sale of music rights for Indian films was a strong area with music rights for Category A films being sold at Rs.10-15 crores, while music rights for Category B films went for Rs.3-5 crore. However, the report failed to provide data about how these sales and the general predicted growth in the industry would affect artists.
Quote
2015 was a turning point for the music industry
"After two decades of uninterrupted decline, 2015 witnessed key milestones for recorded music: measurable revenue growth globally; consumption of music exploding everywhere; and digital revenues overtaking income from physical formats for the first time," said IFPI chairman.