MUMBAI: T-Series, the flagship music label of the Bhushan Kumar led Super Cassettes Industries has officially allowed the IMI’s licensing arms – The Indian Performing Right Society (IPRS) and the Phonographic performance Ltd. (PPL) – to collect the public performance licence fees on its behalf.
The development came into effect from 1 June 2008, and marks a distinct thaw in the relations between the leading music label and the industry body. T-Series had resisted coming under the IMI umbrella for several years now. When contacted, T-Series head Bhushan Kumar said, “The move is to avoid ambiguity regarding the licence fee as the consumers were benefiting without paying the requisite fees. Few years ago, when we tied up with the IPRS, it resulted in draining of our profits. Now, it is from the past one year that we were in talks with IPRS and PPL and they came down to our terms, beneficial for both the parties.
Due to the earlier confusion, both parties were being deprived of profits. So, we thought of getting on board together. We own 50 to 60 per cent of the market share and we are getting a minimum guarantee amount in addition to the revenue share. This deal is only for the performances in India, for overseas performances, we will collect the fee ourselves.”The PPL and IPRS now maintain that, “For usage of T-Series on radio/satellite/Cable/ OTH. IPTV etc, license to be obtained from Super Cassettes Industries limited. For usage of T-Series Music in public performance at any establishments/venues/events in India, licenses to be obtained from Phonographic Performance Ltd (PPL) and Indian Performing Rights Society (IPRS).”
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Commenting on the move, IPRS CEO Rakesh Nigam says, “It works better under a collective management. IPRS covers 90 per cent of the music market and it is in the interest of both the consumers and the music labels to be a part of collection agencies. T-Series owns around 70 to 80 per cent of the new music releases. So, there is no way for the consumers to escape without paying the requisite licensing fee.”
PPL CEO Vipul Pradhan says, “PPL will be collecting the performance licence fee for T-Series for the music played in the public arena. The music companies can opt for collecting licence fees for radio, digital, TV, performance etc and the amount payable to PPL differs accordingly. As T-Series is opting only for performances, it would mainly depend on its market share and its growth over a period of time. It would ease the way licences are to be issued as the consumers need not approach multiple parties for obtaining a license.”
Currently, PPL collects licence fees for 157 music companies scattered throughout the country.
Confirming the development, T-Series President – Marketing Media Publishing Vinod Bhanushali averred, “We have tied up with PPL and IPRS only for collecting licence fee for performances like ground events, hotels, clubs, discos etc. The agency approached us with a deal to collect licence fee, assuring a minimum guarantee amount and an attractive revenue share, which worked for us.”
However, Bhanushali stressed that T-Series is not an official member of the IPRS and PPL, and that the association is only limited to collecting the performance licence fee. “Apart from the performance licence, we will collect the other licence fee ourselves through our body, T-Series Public Performance License.”
Sources in the company however say that the long running feud between the IMI and Super Cassettes, which has just recently witnessed a thaw, dates back to the time when founder Gulshan Kumar was reportedly denied membership with the IMI. Later, with the induction of former IMI director programmes, M M Satish, T-Series launched its own independent licensing body, the T-Series Public Performance License. Gradually, T-Series, which was affiliated to the IPRS, withdrew its membership about four years ago, claiming misappropriation of accounts, sources say. Collections zoomed after the TPPL assumed responsibility for the collection of the various royalties, aver sources.
