Audio OTT economy in India has been saved
Analysis
Audio OTT economy in India
Inflection point
The audio OTT opportunity can create an inflection point for the Indian recorded music industry to become one of the top 10 markets in the world.
As per IFPI, Indian consumers spend 21.5 hours/week listening to music - clearly making India a music-loving country - as compared to a global average of 17.8 hours/week.
What is audio OTT platform?
- Audio OTT platforms represent one of the major distribution and consumption mediums for content owners and consumers.
- Audio OTT services have been placed in medium investment, medium risk grid as the usage rights for commercial exploitation of soundtracks largely depends on the nature of the rights taken (pay per use with or without minimum guarantee, fixed fee arrangement) which could be provided for use over a defined period of time, in perpetuity or for single use.
- An audio OTT platform focuses on content delivery to the consumer, within the distribution space, by procuring content from music labels / publishers / other distributors and offering it over the internet. It is usually accessed through an independently hosted application.
Value Chain of Music for Indian Film Industry - Sound recording creation started at the film producer level
The film producer hires the songwriter / lyricist, composer, singers and the recording studio for an upfront fee. Once the sound recording is created, the rights to this recording is sold to a music label based on several criteria in a bidding process. Thereafter, the winning music label distributes the sound recordings through the music OTT platforms, download stores, and physical retailers. Lyricists / songwriters and composers receive royalties after the release of the film /sound recording.
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