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Music companies to take decision on airing promos soon

01-August-2002
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Music companies to take decision on airing promos soon

Music companies in India have not yet reached a decision on the issue of overexposure of music videos on the music television channels and are scheduled to meet again over the next couple of weeks to decide on their next move. The issue pertains to airing of promos on ETC, B4U Music and Zee Music among others.

The industry has been of the view that too many promos has had a huge impact on their sales and has been holding deliberations over the course of action for the sector as a whole.

According to industry sources, the issue is being discussed at various levels. The issue has gained worrying proportions in the light of music companies not having seen too much success for quite sometime now. Sources added that the entry of private FM operators was also eating into their business.

Over the last few months, the cost of acquiring the rights to films has fallen dramatically. From a peak of Rs 12 crore that Universal Music paid for “Devdas” or Rs 7 crore that Sony Music paid for “Lagaan”, several deals today are being struck on a royalty basis. Producers therefore receive a percentage of sales that is committed instead of the earlier system of huge outright payments.

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