The Indian music industry generally is dominated by music from films. Music is an integral part of Indian film promotion and generates additional revenue streams for film companies. In 2010, the Indian music industry generated $174 million in revenue, of which 68% was derived from film soundtracks. The Indian music industry is projected to grow to $380 million by 2015, reflecting a CAGR of 16.9%, according to the FICCI Report 2011. Digital distribution made up almost 50% of India's total music industry revenue in 2010. As digital music distribution continues to grow, opportunities to reach a larger audience base should increase.

2010 Music Industry Distribution




2010 total revenue: $174 million
Source: FICCI Report 2011

Music is integral to our films, and when we obtain global, all-media rights in our acquired or co-produced films music rights typically are included. Film music rights are often marketed and monetized separate from the underlying film, both before and after the release of the related films. In addition, we act as a music publisher for third party owned music rights within India. Through our internal resources and network of licensees, we are able to provide our consumers with music content directly, through third party platforms or through licensing deals. The content is primarily taken from our film content and the revenues are derived from new media initiatives, sold via third party platforms such as iTunes and Napster as well as streaming services such as Spotify and Rdio, digital streaming, physical CDs and publishing/master rights licensing.

We also exploit the music publishing and master rights we own, which involves directly licensing songs to radio and television channels in India, synchronizing of music content to film, television and advertisers globally, as well as receiving royalties from public performance of these songs when they are played at public events. Ancillary revenues from public performances in India are collected and paid over to us through Phonographic Performance Limited and The Indian Performing Rights Society, which monitor, collect and distribute royalties to their members.

As part of our focus on expanding our music publishing revenues, Eros Music Publishing Limited has signed reciprocal agreements with EMI Music Publishing Ltd., or EMI, where EMI acts as the sub-publisher for us outside of South Asia, and we represent EMI's catalog as sub-publisher of such catalog within India. These agreements are aimed to maximize both parties' music publishing revenues in the two different markets.