Founded in 1962 as a book circulating library, Shemaroo Entertainment, today, has emerged an integrated media content-distribution house owing over 2,700 video titles including film, non-film and regional properties. It also has 100 odd titles in music.
In 2011, Shemaroo Entertainment entered the digital platform, acquiring digital rights from labels and content owners across the country, with an aim to monetize the same on digital platforms. The company has, in the past used digital internet platforms not only for music but to expand reach of its video content.
For a virtual tour of the company’s music business, Radioandmusic.com spoke with Hiren Gada, Director, Shemaroo Entertainment.
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Excerpts:
What does the music industry need today?
Due to several changes, different aspects of revenue making along with the transformation to digital has affected the functioning of the industry. On sales front, there is lot of digital and online piracy. The heartening fact is that consumer usage of music has been rising. Increasingly, more devices are connecting us to music whether it is radio or mobile. We also have many new music playing devices coming up. The industry is finding out newer ways to monetize that.
What are the changes happening in the music industry?
On the revenue front, music is gearing up to strengthen itself on digital side and is working towards newer digital monetization platforms. Secondly, changes have arrived in the industry through Copyright Act, TRAI (Telecom Regulatory Authority of India) guidelines for VAS (value added service), radio royalties are some of the regulatory issues that music industry is dealing with. This has made the growth sluggish in the industry.
What are the challenges labels face with rising digital and falling physical sales?
For past few years, falling physical sales has been the trend. Now, physical business has been limited to music stores geographically. On the music front, the move to digital has started in an appealing way, whether it is through ring tones, downloads, streaming services, mobile phones and so on. Overall, the market has great opportunities to grow.
What are the challenges, specifically on digital platforms, that you face?
There are various regulations and guidelines that make consumption of content different. For instance, TRAI guidelines have dropped the overall consumption through mobile platform. The other challenge is content discovery. There is so much of content that is available online that it is difficult for people to discover how to curate and consume it. There are probably lakhs of tracks that are available online but we have to figure out how audience can reach it.
How are VAS services doing?
Due to TRAI guidelines of triple confirmation and confirmation gateway, the industry has seen a 40-50 percent drop in volume in about two and half months. Overall, the consumer wants this kind of service. The industry will have to find different ways to reach out to consumers and grow. There is an inherent pull for the product. If these services go down there will be something else that will come up.
How do you monetize your services?
We have a full-fledged team dedicated to handling various digital platforms, be it ringtones, YouTube or other internet platforms. Most of YouTube’s current business follows the ad-supported model. They have started the paid model for certain premium content only. Primary model for YouTube is ad-supported and is based on the consumption of any content. They share part of the earned revenue with partners. Our content is already available on most streaming services.
Many music labels are producing films acquiring rights of music. Comment.
We have a multi-platform and integrated approach. So we aggregate, own and also distribute content. We have done little bit of film production. We have not been very active but still produce regularly. Under our production house, wecurrently have film ‘Deedh Ishqiya’ that has hit the floor.
How difficult is it to sustain without acquiring music content?
We have been acquiring content. We have been more active on the video front. We are active as an aggregator for syndicating film content to television networks. We have different divisions of business. All these businesses have their individual paths and plans; and we keep acquiring content. It is an inventory that we have to sell and do our business.
What Shemaroo’s key strength in the present day?
Firstly, it is the large content library that we own which is continuously growing. Secondly, our vast distribution presence across all major consumption platforms, be it digital or physical. Thirdly, we are a strong brand in the entertainment eco-system. We also have a highly motivated, experienced and passionate music business team. These are the key strengths based on which we have been doing business and we have been growing year-on-year at a good rate.
For music, we have 100 odd titles. Our overall film content, along with video (visual and video content) is more than 2700 titles. It will include films, non-films, regional, Hindi and everything.
