October 15, 2020
The Indian Performing Right Society Limited has signed a licensing deal with Hungama Music, making it the first major licensing deal with an Indian music streaming platform. The partnership endorses fair trade music for transparent and ethical value chain for authors, composers, and all music rights holders. This licensing deal aims at helping original creators of music earn fair remuneration for their work with the well-deserved royalties.
Over the past few years, streaming has emerged as the single primary contributor to the overall growth of music consumption. According to the Deloitte report, currently, the audio and video OTT market in India is valued at around $280 million, with the evolving audio OTT market providing nearly 150 million monthly active users access to millions of soundtracks across platforms. With the growing consumption of audio in the OTT market, it is imperative to create an equal trade system where the streaming platforms respect and pay music creators for their work, Rakesh Nigam, CEO, IPRS, said. “It is only fair that the money paid by their subscribers should also go to the original creators of the melody. Paying back the creators shows respect for their creative work and help them have fair remuneration for the efforts put in. With the licensing deal with Hungama Music, we can do so. Participation in this movement, from other players in the music streaming industry, will help us stop the unfair treatment to the music creators happening for many years now. These will also encourage young talents to choose Music as their career option,” he added.
Nigam also highlighted that Fair Trade is about supporting, acknowledging, and celebrating businesses that seek to create an equal trade system through respect and transparency. “We aim to raise awareness on the reasons why fair trade of music is important, and how it will help the original creators. At IPRS, we protect the rights of authors and composers and their composition, which makes us a willing seller only when streaming platforms show interest as a willing buyer. This will not only help the disadvantaged creators of music but also the music community at large.” he stated.
IPRS recently also addressed the concern regarding music platforms and apps not crediting the lyricist through their campaign #CreditTheCreator. IPRS has been vocal on the same and aims to build a strong proposition for acknowledging the authors and composers of music who spend their lifetime in creating their masterpieces.
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