The creative economy is an evolving concept that emphasises the interplay of human creativity, ideas, intellectual property, knowledge, and technology. Previously, activities such as music, dance, film, and visual arts were referred to as "cultural industries." However, the term "creative industries" was first introduced in the 1994 "Creative Nation" report by the Australian Labor Government. The creative economy encompasses various sectors, including heritage, archives, libraries, books and press, visual and performing arts, audio-visual and multimedia, architecture, design, cultural education, and arts and crafts. Despite the growing recognition of the economic and social importance of cultural and creative sectors, there is a lack of internationally comparable statistics, which leads to its undervaluation in policy debates. Nonetheless, these sectors generate considerable revenue and employment opportunities. However, their informal nature often leads to under-recording in terms of value generation.
EY recently published a report titled “The Music Creator Economy: The Rise of Music Publishing in India, 2023”. The report reveals that India consumes more music per capita than the global average and ranks 14th in recorded music revenues. However, the country lags in publishing revenues. The music industry in India has generated a revenue of Rs12,000 crore, which constitutes 6% of the country’s media and entertainment sector. India surpassed China's rank in global publishing revenue in 2022. The Copyright Act of 1957 governs the music publishing business, which is broadly categorised under three types of rights: sound recording, publishing (authors), and performers. These rights are administered by different bodies, including the Indian Performing Rights Society (IPRS), The Recorded Music Performance Ltd. (RMPL), the Indian Singer Rights Association (ISRA), Phonographic Performance Limited (PPL), and NOVEX.
Indians spend an average of 24.4 hours per week listening to music, which is 18% higher than the global average of 20.7 hours per week. Film music continues to hold a significant influence, but its share has decreased from 80% to 64% of total music consumption in India over the last three years, indicating a shift towards a more artist-driven industry. Artist-centric music accounted for 27% of total consumption. Despite the popularity of licensed audio streaming platforms, the data reveals that 74% of music listeners in India still use unlicensed or illegal methods, a figure significantly higher than the global average of 29%. YouTube remains the most preferred platform for music consumption, accounting for an estimated 2.2 trillion streams. As for regional preferences, Hindi and Bhojpuri music collectively accounted for 70% of total music consumption. The remaining 30% was distributed across various regional languages. Despite challenges related to unlicensed music consumption, the industry remains vibrant and responsive to evolving consumer preferences.
Royalties from music publishing are the primary income source for creators, but only a fraction of Indian music creators have registered to receive them. 13,500 music creators out of an estimated 60,000 have registered with their copyright society to receive these royalties in India. Factors like lack of awareness, complex registration processes, and unclear royalty distribution contribute to this low registration rate. Compliance issues further hinder the performance of publishing rights in India, with ongoing debates in courts about royalty payments. While many international and Indian companies comply with royalty payments, India lags in broadcast and public performance royalties.
The Indian music industry is facing significant challenges in providing social security for its creators. The pandemic-induced downturn in live performances and other opportunities has exacerbated the situation, especially for lyricists and composers who struggle to maintain steady income due to limited popularity and fewer avenues for revenue compared to singers and musicians. While the Ministry of Culture offers schemes for artists, more attention is needed to support music creators, as highlighted during the pandemic. Improved royalties could provide financial stability and motivation, thereby stimulating India's musical creativity. Many countries around the world have come up with programs to support artists and provide them with access to healthcare and social security benefits. For example, France's Authors' Society offers artists a comprehensive system that includes unemployment protection, old-age pension, sickness benefits, healthcare insurance, disability allowance, survivor's pension, and maternity cover. Similarly, Germany's Artists' Fund collects contributions from indirect employers, government subsidies, and artists themselves, and offers an old-age pension, health insurance, and long-term care insurance. In Latin America, all artists are governed by the same labour code and covered by social security law, with additional qualifying conditions to access benefits.
Music has always been an integral part of India's cultural landscape, serving as a medium for expression, storytelling, and social commentary. From classical ragas to modern Bollywood hits, Indian music is diverse and creative. However, the music industry in India suffers from an unequal distribution of revenue, leaving the creators with a fraction of the earnings while the producers and labels take the lion's share of the profits. The issue of ownership and copyright lies at the heart of this disparity. Small musicians, singers, and artists in India have historically struggled to assert their rights over their creations. Powerful producers and labels have control over distribution channels and revenue streams, leaving the creators with only a small share of profits.
Addressing these challenges presents an opportunity for India to develop robust licensing and royalty distribution systems, leveraging technological interventions. Many TV channels, radio stations, and digital service providers operate without licenses from copyright societies, and major music companies owning publishing rights are not members of the Indian Performing Rights Society (IPRS). Streamlining royalty processes and ensuring compliance could enhance revenue streams for music creators and elevate India's position in the global music industry.
To create a more equitable ecosystem, the Indian music industry should ensure that artists have more control over their intellectual property. This means that artists should retain ownership of their work, allowing them to make informed decisions about its usage, distribution, and monetisation. By providing full ownership rights to artists, the industry can prevent exploitation and reward creators for their hard work.
In addition, copyright laws in India need to be strengthened to safeguard the interests of artists in the digital age. Robust enforcement mechanisms should be implemented to combat piracy and unauthorised use. These measures will create a more conducive environment for creativity and investment, encouraging artists to push the boundaries of artistic expression without fear of infringement. The music industry should also promote transparency and accountability in revenue-sharing practices. Platforms and streaming services should disclose detailed information about revenue generated from individual songs, ensuring that artists receive their rightful share of royalties. Collective management organisations can play a pivotal role in advocating for the rights of creators and ensuring that they are fairly compensated for their work.
The Indian music industry is a diverse and vibrant landscape with talented creators and artists. However, to create a more inclusive and equitable environment, it is essential to take steps towards greater artist ownership and expanded copyright protection. By championing artists' rights and ensuring fair compensation for their work, a thriving cultural landscape can be created where creativity flourishes, and artists are empowered to share their voices with the world. The Copyright Act of 1957 provide legal protection for creators, but modern challenges require updating the laws to ensure fair compensation and protect moral rights. Strengthening copyright protection incentivises creativity and fosters economic growth in the music industry, leading to greater economic prosperity and job creation.